Stellar Diamonds Share Discussion Threads

[totally banjo] 09/12/2014 15:14

odvod,it's positive news.

[burdetth] 09/12/2014 15:14

Good news this much better than a placing and shows they have faith in stellar to deliver

[totally banjo] 09/12/2014 14:50

09 December 2014

AIM: STEL

Stellar Diamonds plc

("Stellar" or the "Company")

Loan Facility

Stellar Diamonds plc, the London quoted (AIM: STEL) diamond development company focused on West Africa, announces that it has entered into a bridging loan agreement for up to US$2 million with YA Global Master SPV Ltd ("Yorkville") (the "Loan Facility"). The Loan Facility, which will be available to the Company for 3 years provides for two initial loan tranches of principal amounts of US$250,000 each. The net proceeds of the two tranches will be used to support the immediate working capital needs of the Company and its operating expenses before the regular diamond exports and sales from the Baoulé Project gets underway.

In conjunction with the Loan Facility, the Company has also entered into a GBP1 million Standby Equity Distribution Facility ("SEDA")and warrant agreement with Yorkville.

Chief Executive Karl Smithson commented:

"The Company is at an inflection point with the first sale of diamonds from our Baoulé Project expected this month and further regular exports and sales expected to occur every 2 months thereafter. This Loan Facility provides a source of bridge finance to support the working capital and operating requirements of the Company whilst we begin to generate regular cash flows from Baoulé. There is no minimum draw down required under the terms of the SEDA and the Board do not currently anticipate that it will be necessary for the Company to use the SEDA facility. Neither the Company nor Yorkville is under any obligation to agree to any bridging loan beyond the two tranches of US$250,000 each."

Details of Loan Facility

An initial tranche of US$250,000 ("Initial Tranche") will be available for drawdown immediately, followed by a second tranche of US$250,000 ("Second Tranche") which is expected to be drawn down as soon as practicable thereafter. Further tranches may be available if mutually agreed by the Company and Yorkville and subject to certain conditions being met. Each tranche drawn down by the Company is subject to an arrangement fee of 7% of such tranche and interest at 10% per annum.

The Initial and Second Tranches are expected to be repaid in cash, on a monthly basis over 10 months, with first payments commencing three months after the date of the first drawdown.

In the event that Stellar does not meet the expected repayment schedule in respect of repayment of the Initial Tranche, the Second Tranche or any other agreed tranche, the outstanding principal amount of a tranche (a "Loan") drawn down by Stellar under the Loan Facility is convertible at Yorkville's option (in whole or in part) into ordinary shares of the Company ("Ordinary Shares") at 95% of the lowest daily volume weighted average price ("VWAP") of the Ordinary Shares during the 10 trading days following receipt by the Company of notification of an intended conversion.

The Company is entitled to prepay the Loan in cash, in whole or in part. Subject to Stellar making repayments by the agreed repayment dates, Yorkville's option to convert that Loan into Ordinary Shares is terminated. The Facility provides for customary events of default. If an event of default, including failure to meet a repayment date obligation, has been continuing for at least 30 calendar days, the outstanding principal amount of a Loan may at Yorkville's option, be converted in whole or in part into Ordinary Shares at 70% of the closing share price (or the nominal value of the shares if higher) on the trading day prior to the notice of conversion being given by Yorkville to the Company.

The Loan Facility requires that the Company has sufficient share authorities to issue Ordinary Shares to Yorkville under the conversion terms of the Loan Facility and the subscription rights to be granted to Yorkville (details of which are set out below) and repayment of any outstanding Loan may be required if the Company does not have sufficient share authorities.

Details of SEDA Facility

more from link below:

[johnwise] 05/12/2014 08:17

Stellar Diamonds exports first batch of stones from Guinea

[asmodeus] 04/12/2014 11:09

Well it always does with Lucara diamonds (Luc). qv.

[tradermel] 04/12/2014 07:42

The share price just cannot go against this relentless positive news, surely

[taffy100] 04/12/2014 07:37

Yet more good news

4 December 2014


AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")

First Diamond Export from Trial Mining at Baoulé Kimberlite, Guinea

Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces its first export of diamonds and an operational update from trial mining at its 75% owned five hectare Baoulé kimberlite pipe ("Baoulé") in Guinea. A short Baoulé operational presentation will be lodged on the Company's website at www.stellar-diamonds.com.

Highlights:
· Diamond parcel of 941 carats exported to Antwerp with sale expected in near future
· Parcel includes gem diamonds of 9.2, 5.5, 5.1, 4.7 and 4.3 carats in size
· Production of 1,206 carats (+1.25mm) to date with an average grade of 15cpht
· 85 diamonds over 1 carat in size recovered
· Plant now running at target capacity of average 55 tonnes of wet kimberlite per hour which at average grade of 15cpht is expected to yield monthly production of 2,000 carats
· Regular export and sales expected during 2015

Stellar Diamonds Chief Executive Karl Smithson commented:
"This first diamond export from Baoulé is a milestone for the Company ahead of realising our first cash-flow which is expected when the goods are sold in the near future. Trial mine production is progressing very well and we have now reached our target processing capacity that at existing grades could yield monthly production of 2,000 carats per month if maintained. We anticipate a diamond export and sale every two months during 2015.

"We are particularly pleased with the regular occurrence of gem quality stones of up to 9 carats in size from the limited processing to date. As this region of Guinea is renowned for its large diamonds of over 100 and 200 carats in size mined from alluvial mining, we are hopeful that we may recover yet larger, high value diamonds as we continue to process higher volumes of kimberlite over the coming months. I look forward to updating shareholders as we progress our strategy of delivering value from our key assets at both Baoulé and Tongo."

Diamond Export and Planned Sale
The Company recently undertook its first diamond export from Baoulé. A parcel of 941 carats, including gems up to 9 carats in size, have been safely delivered to Antwerp where they will undergo cleaning, assorting and valuation prior to a planned sale later in the month. The export was completed in accordance with the Kimberley Process Certification Scheme and export royalties were paid in Guinea in accordance with local mining law. This first sale will test the market for the Baoulé diamonds and is expected to be the first of regular export and sales to follow during the course of 2015.

Trial Mining Production
Trial mining of the five hectare Baoulé kimberlite pipe is progressing well. The pipe is currently being mined from the eastern lobe over an area of approximately 200m x 100m which provides a sufficiently large surface area to continue mining for some months to come. The material being mined is comprised of predominantly green, weathered hypabyssal kimberlite that has been exposed by stripping under approximately 5m of disturbed overburden from previous artisanal diamond diggings.

The past month has seen a steady increase in the plant throughput to an average of approximately 55 tonnes per hour, which will yield 22,000 tonnes per month if maintained, as our team have become accustomed to the plant and the material being processed. If the existing processing rates are sustained the target production of 2,000 carats per month is expected to be met (assuming an average grade of 15cpht so far realised).

Diamond Results
A total of 1,206 carats have been recovered to date at a +1.25mm cut off, giving an average grade of 14.97cpht. This compares favourably with the historically reported +1mm grade of 13cpht. A total of 85 stones greater than 1 carat have been yielded and gem diamonds of 9.2ct, 5.5ct, 5.1ct, 4.7ct, 4.3ct plus a number of +2ct gems have been recovered so far. This would suggest that the pipe is host to a large stone size distribution and justifies the strategy of trial mining 100,000 to 200,000 tonnes of kimberlite over the coming year in order to determine the presence of large, high value stones in the pipe.

Gem and near gem diamonds represent approximately 70% of the diamond population recovered, with 30% being classified as industrial.

Sample
Diluted Dry Tons
Carats
+1.25mm Grade (cpht)
Number of Diamonds
Diamonds greater than
1-carat
Gem Diamonds greater than 2-carat (size in carats)
Near or Non-Gem Diamonds greater than 2-carat (size in carats)

Trial Mine East Lobe

(including commission-ing)
8,051.55



1,205.57



14.97



8,899



85



9.2, 5.5, 5.1, 4.7, 4.3, 2.8, 2.5, 2.5, 2.2, 2.2


6.0, 4.7, 4.5, 3.8, 3.8, 3.8, 3.7, 3.4, 3.0, 2.9, 2.5, 2.5, 2.3, 2.3

Internal Resource Model
Stellar has previously modelled and reported the historical drilling data for the Baoulé pipe. A target resource of 22 million tonnes to a depth of 300m was established by the modelling. Assuming the current +1.25mm mining grade of 15cpht is maintained this would suggest that a target resource of 3.3 million carats is contained in the pipe to the 300m depth. During the course of 2015 Stellar plans to undertake reconfirmation drilling and commission an independent resource estimate.

This announcement has been reviewed by Karl Smithson, Chief Executive of Stellar, a qualified geologist and Fellow of the Institute of Materials, Metals, Mining, with 26 years' experience.

[frogkid] 03/12/2014 19:06

boys, there is no interest in this sector for now. But when the good times start to roll again we will do very well here, unless we get taken out first !

[unionhall] 03/12/2014 17:41

Share price is probably being driven more by the likely price of the next placing than the eventual value of the company. That seems to be how these explorers work....

[peterz] 03/12/2014 17:03

You are right...blinking madness.

[joesoap3] 03/12/2014 10:18

I am convinced that if we had a RNS with someone offering 10p a share, the price would fall by the end of the day

[johnwise] 03/12/2014 08:15

Stellar Diamonds signposts route to early production in Sierra Leone
By Ian Lyall

Stellar Diamonds (LON:STEL) has outlined a route to early cash flow from its Tongo Project in Sierra Leone as well revealing significantly enhanced economics for the operation.

More

[johnwise] 30/11/2014 12:25

Proactive weekly mining news summary, including Stellar Diamonds, Paragon Diamonds, Rambler Metals, Lydian and Goldstone Resources

[frogkid] 30/11/2014 09:15

Agreed, bid from Petra maybe ?

[goodpick] 29/11/2014 23:33

The whole flavour of their statements and PR looks like they are a shop window.

[unionhall] 28/11/2014 16:11

Yes - Investors don't want it "in-situ", they want it in the bank.

[johnwise] 28/11/2014 15:29

"The combination of high grades and high diamond values make this kimberlite one of the highest value kimberlites in the world in terms of in-situ value of dollar per tonne," said the group chief executive, Karl Smithson.

[joesoap3] 28/11/2014 10:31

normal reaction to news again. Initial rise and then back to square 1 and maybe even below it. I hope there is no bad news. Very frustrating