Stellar Diamonds generates $1.7 million to fund West African projects

Stellar Diamonds plc said it raised around $1.7 million, before expenses, via a placing and subscription of close to 42 million new Ordinary Shares with directors, institutional and other investors.

The miner and explorer, with projects in West Africa, said the money is to be used to advance work at its Droujba and Tongo projects.

Meanwhile, independent economic scoping studies at the sites will also be commissioned. The studies are expected to take up to six months to complete.

Stellar Chief Executive Officer Karl Smithson said: “We are very pleased with the level of shareholder support from existing and new institutional and private client investors. The placing funds will be applied to the development of our key kimberlite projects of Droujba in Guinea and Tongo in Sierra Leone.

"Having established at the end of last year a combined inferred resource of 4 million carats, the next phase is to commission independent conceptual economic scoping studies on both projects to establish their preliminary economics before deciding whether to move into the pre-feasibility stage later this year,” Smithson added.