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Stellar Shares Fall After Funding Deal
Feb 27, 2017 7:53 AM
By Rapaport News
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RAPAPORT... Trading resumed in Stellar Diamonds’ shares on Monday
following a six-month suspension, after the company completed fundraising for a
mining project in Sierra Leone.
The issue of 5.9 million new shares at a price of $0.07 (GBP
0.055) per share will raise proceeds of $402,700 (GBP 324,500), the miner said.
In addition, the company plans to raise a further $310,246 (GBP 250,000)
through an open offer and $24,820 (GBP 20,000) by way of a director
subscription.
Funds from the issue of shares and the open offer will go
toward completing an agreement with Octea Mining under which Stellar will
operate Octea’s Tonguma mine in Sierra Leone and pay a proportion of revenues
back to the owner. Stellar had originally planned to acquire the mine, but
opted out of this move.
The initially proposed acquisition of Tonguma was deemed to
be a reverse takeover and would have required shareholder approval. For this
reason, Stellar’s shares were suspended on the London Stock Exchange’s
Alternative Investment Market last August pending publication of a document
outlining the deal.
Shares in Stellar fell by more than a quarter in early
trading Monday.
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Tags:
London Stock Exchange, mining, Octea Mining, Rapaport News, Sierra Leone, stellar, Stellar Diamonds, Tonguma
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