Stellar Diamonds Earns $300,000 From Boulé Auction in Antwerp, Raises $860,000 Capital

Mining and Exploration
15/03/2016 10:25

Stellar Diamonds plc, the London listed diamond development company focused on West Africa, announced that it has conditionally raised $860,000 before expenses through an equity issue in addition to realising approximately US$300,000 through a sale of diamonds in Antwerp from its Guinea-based Baoulé project. The recent sale of 3,291 carats by auction in Antwerp realized proceeds of US$299,988 at an average of US$91.05 per carat. The lower average price when compared with the previous sale in May 2015 (US$156 per carat) is due to a different mix of goods with a higher proportion of lower quality stones as well as a broadly weaker rough diamond market since mid-last year. However, certain gemstones in this most recent auction realised prices of over US$1,000 per carat and up to US$4,600 per carat, mostly white gems and fancy coloured yellows, demonstrating that high quality stones are present within the Baoulé pipe.

Stellar also placed 4.4 million new ordinary shares at 10p apiece, while its largest shareholder Deutsche Balaton agreed to subscribe for 1.6 million subscription shares at 10p each. Deutsche Balaton would now hold an aggregate 8.5 million shares, growing its stake to 26.77% following the conclusion of the transaction. The proceeds would be used to support the company’s Tongo mine licence application process in Sierra Leone, as well as complete the trial mining and diamond sales exercise and a maiden resource statement, targeting three-million carats, at the Guinea-based Baoulé project. The company has further announced that Liviu Meran and Dr. Markus Elsässer will step down as non-executive directors with effect from 15 March 2016 following a rationalisation of the board in line with the Company’s on-going corporate cost rationalisation.