Stellar Diamonds raises funds in placing, open offer

West Africa-focused Stellar Diamonds has conditionally raised about £324,500 by way of a scaled-back placing of 5.9m shares at 5.5p each.

Stellar was also providing qualifying shareholders the opportunity to subscribe for new shares to raise up to about £250,000 at 5.5p each via an open offer.

Proceeds of both would be used to progress the recently announced proposed tribute mining agreement for the Tonguma project, to repay creditors and to provide working capital.

Subject to the level of uptake of the open offer, proceeds would also be used to pay the Tongo environmental licence fee.

The placing was scaled back so as not to exceed Stellar's existing share authorities. The open offer was subject to shareholders approval at the company's annual meeting.

At 13:17 GMT, shares in AIM-priced Stellar were flat at 7.12p each.