Stellar Diamonds' shares fall after placing, open offer update

West Africa-focused diamond development company Stellar Diamonds' shares are down nearly a quarter after its shares were restored to AIM trading following a placing of 5.9m shares at 5.5p each to raise £324,500.

It also gave further details of the open offer to raise up to an additional £250,000 via the issue of up to 4.5m shares, and a director subscription to raise £20,000 through the issue of 363,636 new shares. Both were at 5.5p a share.

The company also confirmed the issue of 1.3m new shares to directors in settlement of outstanding fees owed.

It said placing and open offer funds would go towards the completion of the proposed Tribute Agreement over the high-grade and high value 4.5m carat resource of the Tongo-Tonguma mine project, paying existing creditors of the business and for general working capital.

Stellar said that it estimated the Tongo-Tonguma Project had the potential for an estimated after tax NPV(8) of roughly $104m and IRR of 31% attributable to it.

At 12:54 GMT, shares in AIM-quoted Stellar were down 24.56% to 5.38p each.