Stellar Diamonds PLC Amendments to Convertible Loan Notes (0774Z)
December 12 2017 - 3:20AM
UK Regulatory
TIDMSTEL
RNS Number : 0774Z
Stellar Diamonds PLC
12 December 2017
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION
TO US NEWS WIRE SERVICES.
12 December 2017
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")
Amendments to Convertible Loan Notes
Stellar Diamonds plc, the London listed diamond development
company focused on West Africa, announces an extension to the
longstop date of its US$1.65 million outstanding convertible loan
note ("DB CLN") with Deutsche Balaton. The longstop has been
extended to 31 March 2018. Details of the DB CLN are contained in
the announcements by the Company of 2 November 2015, 6 October
2016, 24 February 2017, 5 May 2017 and 3 July 2017 and 11 September
2017 ("CLN Announcements"). The maturity date of the warrants
attached to the DB CLN are eighteen months after the earlier of the
date on which the Tongo-Tonguma tribute mining agreement
("Transaction") completes, or the date on which the Company makes
an announcement that the Transaction will not proceed. There are no
other changes to the DB CLN.
Furthermore, the Company announces an extension to the longstop
date ("Transaction Default") of its US$1.34 million outstanding
Convertible Loan Note with Deutsche Balaton, Creditforce and Steven
Poulton ("US$1.34m CLN") to the 30 April 2018. The most recent
details of the US$1.34m CLN are contained in the announcement dated
14 August 2017. There are no other changes to the US$1.34m CLN.
Stellar also announces that it has entered into an interest free
unsecured loan agreement with Rowan Carr, the Company's Chief
Operating Officer, for US$109,500 in relation to funds advanced by
Rowan Carr for project costs incurred by the Group in Guinea whilst
the recent asset disposal process was being completed ("Loan"). At
present there is no fixed repayment schedule however the Company
has committed to repay the Loan using the proceeds of future
fundraises.
Note on Related Party Transaction
By virtue of Deutsche Balaton being a substantial shareholder
and Steven Poulton being a Director of the Company the amendments
to the DB CLN and the US$1.34m CLN (together the "CLNs") above
constitute related party transactions under the AIM Rules for
Companies. By virtue of Rowan Carr being a director of a subsidiary
company of Stellar, the Loan also constitutes a related party
transaction. The Directors who are independent of the CLNs and the
Loan consider, having consulted with the Company's Nominated
Adviser, that the amended terms of the CLNs and the Loan are fair
and reasonable insofar as the Company's shareholders are
concerned.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
About Stellar Diamonds plc
Stellar is an AIM listed (AIM: STEL) diamond development company
focused on the 4.5 million carat high-grade and high value
Tongo-Tonguma kimberlite diamond project in the world famous
diamond fields of eastern Sierra Leone. An independently generated
mine plan, based on over 66,000m of drilling that has been
completed to date, envisages the production of over 4 million
carats, generating gross revenues of more than US$1.2 billion, over
a 21 year life of mine. Initial production at Tongo-Tonguma is
scheduled to occur in the first year of development, building up to
over 200,000 carats per annum, with a weighted average modelled
diamond value of $229 per carat. The Tongo-Tonguma mine is
estimated to give Stellar an attributable a Post-tax NPV(8) of
US$109 million and IRR of 31%.
For further information contact the following or visit the
Company's website at www.stellar-diamonds.com.
Karl Smithson, Stellar Diamonds plc Tel: +44 (0) 20
CEO 7164 6371
Emma Earl Cairn Financial Advisers Tel: +44 (0) 20
Sandy Jamieson (Nominated Adviser) 7213 0880
Jon Bellis Beaufort Securities Tel: +44 (0) 20
Limited (Joint Broker) 7382 8300
Martin Lampshire Peterhouse Corporate Tel: +44 (0) 20
Finance (Joint Broker) 7469 0930
Rory Scott
Mirabaud Securities Tel: +44 (0) 20
(Financial Advisers) 7878 3360
Tim Blythe Blytheweigh Tel: +44 (0) 20
Nick Elwes (Financial PR) 7138 3204
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "will" or the negative of those, variations or
comparable expressions, including references to assumptions. These
forward looking statements are not based on historical facts but
rather on the Directors' current expectations and assumptions
regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the
amount, nature and sources of funding thereof), competitive
advantages, business prospects and opportunities. Such forward
looking statements re ect the Directors' current beliefs and
assumptions and are based on information currently available to the
Directors.
A number of factors could cause actual results to differ
materially from the results discussed in the forward looking
statements including risks associated with vulnerability to general
economic and business conditions, competition, environmental and
other regulatory changes, actions by governmental authorities, the
availability of capital markets, reliance on key personnel,
uninsured and underinsured losses and other factors, many of which
are beyond the control of the Company. Although any forward looking
statements contained in this announcement are based upon what the
Directors believe to be reasonable assumptions, the Company cannot
assure investors that actual results will be consistent with such
forward looking statements. Accordingly, readers are cautioned not
to place undue reliance on forward looking statements. Subject to
any continuing obligations under applicable law or any relevant AIM
Rule requirements, in providing this information the Company does
not undertake any obligation to publicly update or revise any of
the forward looking statements or to advise of any change in
events, conditions or circumstances on which any such statement is
based.
** ENDS **
This information is provided by RNS
The company news service from the London Stock Exchange
END
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