RAPAPORT… Stellar Diamonds raised GBP 2.37 million ($4.7 million) in pre-IPO (initial public offering) placement of its shares, major shareholder Mano River Resources reported Monday (March 31, 2008.)
The company issued 2.375 million new ordinary shares at GBP1 in the run up to its proposed listing on London’s AIM (Alternative Investment Market,) which is as yet unscheduled and “subject to market conditions.”
Stellar’s non-executive chairman Peter Daresbury purchased 300,000 shares and company CEO Karl Smithson bought 25,000 shares. The placement represents 7.8 percent of Stellar’s issued share capital.
“The funds raised will primarily be used to strengthen Stellar’s portfolio ahead of achieving a listing on AIM by further developing our near term production projects and by building the long term growth prospects for the company by investing further capital into our 2008 exploration programmes,” said Stellar’s chief executive officer Karl Smithson.
Stellar would focus the funds on developing its Kono underground trial mining project in Sierra Leone, a joint venture with Petra Diamonds, and in its wholly owned Mandala alluvial diamond project in Guinea.
Following the placement, Mano owns 63 percent of Stellar.