(Ecofin Agency) - AIM-listed firm Stellar Diamonds Plc has raised £600,000 to support various development initiatives at its mining projects in Sierra Leone and Guinea.

The diamond mining developer has issued 4.4 million new ordinary shares at 10p a piece, while its partner Deutsche Balaton agreed to subscribe 1.6 million shares at 10p each. The subscription will allow the German investment firm to hold a total of 8,512,692 ordinary shares, thus increasing its stake to 26.77%.

Proceeds from both transactions (placing and subscription) will be used by Stellar for general working capital purposes to support Tongo mine application process in Sierra Leone and complete trial mining and diamond sales exercise at its Baoulé mine in Guinea. The company targets on the latter a 3 million carats resource.

Stellar also announced that the sale by auction of 3,291 carats of Baoulé diamond at Antwerp generated $299,988, indicating it was added to its equity. Average price was $91.05/ct, falling from $156/ct sale price in May 2015 due to a different mix of goods of higher proportion of lower quality stones.

Stellar Diamonds holds a 100% stake in Tongo project whose dyke-1 can be exploited for 18 years and a 75% stake in Baoulé project, a 5 hectares kimberlite pipe in the Aredor region.

Louis-Nino Kansoun