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12 Nov 2015 09:30
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12 November 2015
AIM: STEL
Stellar Diamonds plc
("Stellar" of the "Company")
UNSECURED BRIDGE LOAN
Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces that it has entered into a bridge loan agreement for an amount of USD150,000 ("bridge loan") from Deutsche Balaton AG ("Deutsche Balaton"), a new institutional investor pending the passing of certain resolutions at the General Meeting ("GM") scheduled for 19th November 2015. At the GM a series of resolutions are proposed in relation to, inter alia, a subscription, issue convertible loan notes and a capital reorganisation as announced on the 2 November 2015. Subject to the resolutions being passed, the Company will receive funds of £1.56 million from Deutsche Balaton and other investors ("the Fund Raise").
An interest rate of 8% per annum is charged on the Bridge Loan though the loan will be repaid no later than the 30th November 2015 from the proceeds of the Fund Raise. Stellar's Chairman, Lord Daresbury, has undertaken to personally guarantee the Bridge Loan.
The proceeds of the Bridge Loan will enable Stellar to make immediate steps towards the recommencement of the trial mining at Baoulé and the submission of the Tongo mining licence application and not have to wait until the General Meeting has taken place.
**ENDS**
For further information contact the following or visit the Company's website at www.stellar-diamonds.com.
Karl Smithson, CEO Philip Knowles, CFO | Stellar Diamonds plc Stellar Diamonds plc | Tel: +44 (0) 20 7010 7686 Tel: +44 (0) 20 7010 7686 |
Martin Lampshire Emma Earl Jo Turner | Daniel Stewart & Company plc (Broker) Cairn Financial Advisers (Nomad) | Tel: +44 (0) 20 7776 6550 Tel: +44 (0) 20 7148 7900 |
Lottie Brocklehurst | St Brides Partners Ltd | Tel: +44 (0) 20 7236 1177 |
Charlotte Heap | (Financial PR) | Tel: +44 (0) 20 7236 1177 |
About Stellar Diamonds plc
Stellar is an AIM quoted (AIM: STEL) West African focused diamond development company which is continuing trial mine evaluation of its Baoulé kimberlite in Guinea, and is progressing the 1.45 million carat Tongo Dyke-1 resource through the mining licence application process. In addition, Stellar holds the 3 million carat Droujba project in Guinea and continues to pursue channels to ensure the proper reinstatement of its Kono licences in Sierra Leone.
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