Uncut diamondStellar Diamonds, the AIM-quoted diamond mining and exploration company focused on West Africa, has raised approximately £1 million for the current trial mining at the company’s Baoulé kimberlite project in Guinea and for working capital purposes.

The fundraising was achieved through the issue of 88 362 066 new ordinary shares of 1p each at 1.16p per share to directors, existing private shareholders and new institutional investors. The Fundraising has been conducted in conjunction with Daniel Stewart & Company plc.

“With revenues from our first diamond sale of a 5 900 carat parcel expected in the near-term this placement strengthens the company’s balance sheet at a time when capital markets in the junior sector are notoriously weak,” said Stellar Diamonds Chief Executive Karl Smithson.

“It also underscores the support of our existing shareholders, most notably UBS Deutschland, and our directors, many of who are participating. We are also pleased to welcome new shareholders to the Company at this exciting juncture in our growth and development. Based on the current processing capacity and grades, we expect to continue to yield approximately 2 000 carats per month with regular diamond exports and sales expected during 2015.”

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