Stellar Diamonds plc announcing  its unaudited interim results for the six months to 31 December 2017 said that in this accounting period the Company  concentrated on raising funding to bring the Tongo-Tonguma project in Sierra Leone into production.

The Company reported   the placing of £ 330,000 and an oversubscribed open offer raising £200,000 has been completed.

Gem Diamonds has also received the  final funds related to its Guinea transaction, bringing total gross consideration to US$ 1,250,000 (including exclusivity payment of US$ 250,000 received pre-interim report period). Further, it announced the repayment of US$ 1.24m convertible loan note (CLN) and the issue of a US$1,340,000 CLN during the reporting period.

It has made amendments to the US$ 1,650,000 and US$ 1,340,000 CLNs and now  the repayment longstop dates have been extended to April 30, 2018 and March 31, 2018 respectively,  for the completion of the Tongo-Tonguma tribute mining agreement and securing of the project funding as defined in the CLN agreements.

Stellar Diamonds Chief Executive Karl Smithson commented, “The interim reporting period has primarily been focussed on sourcing the necessary funding to bring the Tongo-Tonguma project into production. The capital markets in the UK have proven extremely difficult to raise funds for junior mining companies in recent years. Furthermore, the market capitalisation of Stellar during the last six months hovered around the US$ 2 million level, which provided additional challenges of raising capital to develop the mine in Sierra Leone. However, we were pleased to report on 1st February 2018 that a possible share offer to acquire Stellar by ASX listed Newfield Resources, at a significant premium for Stellar shareholders, was received which, if successful and alongside a planned fundraise by Newfield Resources, would also bring the required project development capital for Tongo-Tonguma.”

Smithson explained  that apart  from the   offer for the Company   --  and subsequent to the period ended 31 December 2017 --  Newfield Resources has advanced   Stellar an unsecured loan of US$ 3 million.   

“In addition, Stellar completed the disposal of its Guinea assets and three Guinean subsidiary companies to BDG Capital in return for an overall payment of US$1.25 million, meaning Stellar can focus its resources on the Tongo-Tonguma project in Sierra Leone,” Smithson stated.