West Africa-focused Stellar Diamonds' (LON:STEL) shares rose after it confirmed further high diamond grades had been returned from the bulk sampling programme under way at its 1.1 million carat Tongo dyke kimberlite project in Sierra Leone.

Highlights included:

- Initial sample processing yielded 151 carats from 141t of kimberlite for a grade of 107cpht with further results expected approximately every four weeks

- Anticipated that diamond grade will increase as further diamonds are recovered following re-processing

- Outstanding quality of diamonds classified as 86% gem quality with several stones greater than 1 carat in size

- Bulk sampling on-going with 772 tonnes collected to date as part of the Dyke-1 mining DFS

- Objective to recover a minimum 1,000 carat parcel for diamond grade and value confirmation

- Previous results established a grade of 120cpht at US$248 per carat from a 1,050 carat parcel

- Definitive Feasibility Study ("DFS") expected to be completed in 2014, culminating in a production decision at Tongo Dyke-1

I'm in ..worth a punt... let's see what happens!

1 April 2015
AIM: STEL

Stellar Diamonds plc
("Stellar" or the "Company")

Application for Mining Licence at Tongo Kimberlite Project, Sierra Leone

Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces that it has commenced the application process for a mining licence at its 100% owned 1.45 million carat Tongo Dyke-1 kimberlite project in eastern Sierra Leone ("Tongo"). This is as a result of the Company's decision to fast-track Tongo to production following recent positive resource definition work, mining studies and financial modelling undertaken by Paradigm Project Management ("PPM").


Highlights:

· Acceleration of the Tongo project, saving shareholder funds and reducing the time to production

· PPM to consolidate and update all previous technical reporting into a single Preliminary Economic Assessment ("PEA")

· Attractive economics for surface mining concurrent with underground mine development

· Estimated pre-tax NPV(10) and IRR of US$75 million and 55% respectively (120cpht and US$270/ct)

· Significant potential NPV and IRR upside using higher resource grade of 165cpht and US$270/ct

· Target of 120,000 carats production via surface mining in first 3 years

· Target of over 1 million carats mined in estimated 16 year mine life

· Low capital expenditure estimated at US$20 million to bring mine into production

· Funding primarily by debt structures being targeted

· Favourable response received from Sierra Leone stakeholders for decision to accelerate Tongo towards mine development



Chief Executive Karl Smithson commented:

"Moving Tongo to the mining licence application stage is a major milestone for the project. Having recently defined a faster route to production cash flow by the assessment of surface mining studies and based on the extensive resource and financial modelling completed to date, Tongo has clear economic potential. The application for a mining licence will be accompanied by updated mining and financial reports under a Preliminary Economic Assessment instead of a previously planned Definitive Feasibility Study in order to cut costs and seek to fast-track Tongo to production. Simultaneous to this we intend to establish a suitable financing structure to access debt funding for the majority of the US$20 million of capital expenditure which is estimated to be required to bring the project into production.

"We are delighted at the positive response received from various stakeholders within Sierra Leone. There is a clear will to support our efforts to build the next diamond mine in Sierra Leone, which can offer a significant and positive contribution to the post-Ebola social and economic reconstruction. We look forward to the full support of the Sierra Leonean Government in assisting our efforts."

More from link below:

http://www.moneyam.com/action/news/showArticle?id=5007701

UPDATE - Stellar Diamonds lodges application as it fleshes out Tongo fast track plan
By Philip Whiterow
April 01 2015, 12:44pm

--- ADDS SHARE PRICE AND BROKER COMMENT---

Stellar Diamonds (LON:STEL) has lodged its application for a mining licence at the Tongo Dyke-1 kimberlite project in eastern Sierra Leone as part of its new fast-track plan.

All of the data compiled so far on the 1.45mln carat deposit will also be pulled together for a preliminary economic assessment. This will be instead of a previously planned definitive feasibility study and will cut costs.

Tongo has a net present value (NPV) on current estimates on US$75mln assuming an average 120cpht [carats per hundred tons] and US$270/ct [per carat] price.

Stellar expects to increase that NPV value by targeting higher grade stones at an average 165cpht, with an initial target of 120,000 carats production through surface mining during the first three years.

It will cost US$20mln to bring the mine into production, to be funded by debt, with a target over the total life of mine of one million carats over 16 years.

Karl Smithson, chief executive, said: "Moving Tongo to the mining licence application stage is a major milestone for the project.

“Simultaneous to this we intend to establish a suitable financing structure to access debt funding for the majority of the US$20mln of capital expenditure, which is estimated to be required to bring the project into production.

"We are delighted at the positive response received from various stakeholders within Sierra Leone.

“There is a clear will to support our efforts to build the next diamond mine in Sierra Leone, which can offer a significant and positive contribution to the post-Ebola social and economic reconstruction."

Sanlam keeps its 'speculative buy' unchanged on the shares, targeting 1.86p.

"We believe that the Tongo and Baoule projects merit development (Baoule dependent on stone value) but are concerned about recommending a stock that needs equity in the current soft funding environment (for junior miners)," said analyst Charlie Long.

He added that Stellar's debt approach would minimse the dilution if successful, so long as the cost is not too high.

"Presumably a project level investor is also a possibility," added the analyst.

Stellar shares were unchanged at 0.85p.

A bit more publicity:

STELLAR DIAMONDS MAKES ITS FIRST SALES
07 April 2015


Stellar Diamonds Plc has recently completed its first tender of rough diamonds offered for sale in Antwerp. The company has reported sale of 4,414 carats, out of a total of 6,031 offered at the tender, for gross revenues of US$417,122.
The sale reportedly included excellent quality white stones, with a value of US$5,000 per carat achieved for one particular five carat stone.

The company withheld 1,617 carats from the sale as they found the bid prices offered for those goods were below what they considered acceptable. These goods will be added to future exports and be offered for sale at a later date.
The company has said that it is pleased with the revenues generated from the sale in what it describes as a challenging market for rough diamonds. Future sales will be targeted for optimum selling windows with the next sale from Stellar's operations planned for May 2015.

20 April 2015
AIM: STEL

Stellar Diamonds plc

("Stellar" or the "Company")



First 5,000 Carats Achieved from Trial Mining at Baoulé Kimberlite, Guinea

Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces an operational update from trial mining at its 75% owned, five hectare Baoulé kimberlite pipe ("Baoulé" or "the Project") in Guinea.

Highlights:

· Trial mining has yielded a total of 5,087 carats to date at an average grade of 13.5 cpht

· High quality gems continue to be recovered, including stones of 12.6 carat and 10.0 carat

· First sale of 733 gem quality carats from Baoulé last month realised $195,000 for an average value of $266 per carat (which formed part of a larger sale of 4,414 carats)

· Included in this sale was a 5.55 carat stone which sold for US$5,000 per carat and several stones which exceeded US$1,000 per carat underpinning the high value and quality of some Baoulé gems

· Next diamond sale planned for May 2015

· Objective to recover a total of 15,000 carats to complete the trial mining phase and provide a basis for deciding whether to advance Baoulé to commercial scale mining

· JORC Resource to be confirmed on completion of trial mining. Current in-house estimate of 3.3 million carats based on previous drilling and average target grade of 15cpht



Stellar Diamonds Chief Executive Karl Smithson commented:

"Good progress continues to be made from trial mining at Baoulé. Our objective is to produce 15,000 carats from this exercise to enable us to determine the grade, value and presence of large stones in the pipe, with a view to using this information to consider a decision to advance Baoulé to commercial scale mining. It is pleasing that we have achieved our maiden revenues following the first diamond sale from Baoulé, as well as other Stellar projects. We are currently planning the next export and sale of Baoulé goods and remain committed to targeting additional diamond sales throughout 2015. I look forward to updating shareholders on progress as we continue the trial mining programme at Baoulé and in the process increase our cashflow."



Trial Mining Production and Processing

Trial mining of the eastern lobe of the Baoulé kimberlite pipe has continued during the first quarter of 2015. In order to maximise the pit area in preparation for the second 3m cut, mining progressed towards the eastern and southern margin of the pipe where a lower grade contact breccia was recently encountered, reducing the average grade to 13.5cpht at a 1.25mm cut off. This has resulted in fewer carats being produced than anticipated at this point in time, but mining and processing of the second cut is expected to see a return to higher grades, based on the results realised from the first cut of the lobe.


Simultaneous to this mining, stripping of the western lobe of the pipe has commenced in advance of the rainy season. Overburden and ground disturbed by diamond diggers is currently being stripped to access the uncontaminated kimberlite in preparation for bulk sampling.


The processing plant is running at a steady state average capacity of approximately 50 tonnes per hour over a double shift (16 hours). The kimberlite material remains predominantly weathered, however some harder blocks of kimberlite are being encountered. Since these blocks are too hard to scrub but are also too soft to efficiently crush, they are being sent to an oversize stockpile where they are broken down with an excavator prior to being re-fed into the plant to ensure maximum diamond liberation and integrity of results.

The overall objective of the trial mining exercise is to produce up to 15,000 carats for grade and diamond value determination of the Baoulé pipe. The Company remains on track to achieve this objective and is currently one third of the way through this exercise. A short operational update of the mining can be found at the following link:

http://stellar-diamonds.com/wp-content/uploads/2015/04/Baoule-Presentation-Apr-15.pdf

Diamond Results

A total of 5,015 carats have been recovered to date from Baoulé at a +1.25mm cut off, giving an average grade of 13.6cpht. This still compares favourably with the historically reported +1mm grade of 13cpht. A total of 380stones greater than 1 carat have been yielded and numerous gem diamonds of over 5 carats and more recently gem diamonds of 10.0 and up to 12.6 carats have been recovered to date.

SEE LINK AT bop FOR TABLE

Diamond Sale

The first diamond sale of 2015 was announced on 24 March 2015. Included in this sale were 733 carats of gem quality diamonds from Baoulé that sold for an average of US$266 per carat and which realised US$195,000 in revenues. This sale included a stone of 5.55 carats which attracted a price of US$5,000 per carat, as well as other stones that exceeded US$1,000 per carat in value, which demonstrates the high quality of some of the goods at Baoulé. Stellar opted to withhold 1,617 carats of predominantly near gem/industrial goods from this sale as the Company believed a stronger price could be realised for the goods in future sales. Stellar will present these withheld goods for sale alongside the next export from Baoulé at a sale currently planned for May 2015. Further information will be announced in relation to the next planned sale, when the final number of carats and definitive dates are established.

Ebola Update

Although the Ebola virus persists in some areas of Guinea there have been no recorded cases in the area of operation for some time. Nevertheless, the Company remains vigilant and adheres to strict operating procedures to ensure the continued well-being of all employees and the local communities.

Competent person

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.

http://www.moneyam.com/action/news/showArticle?id=5018871

Stellar Diamonds pleased with trial mining progress at Baoule
By Philip Whiterow
April 20 2015, 8:33am

Stellar Diamonds (LON:STEL) has recovered more large, high quality stones from its trial mining operation at Baoule in Guinea.

Latest mining has seen diamonds of between 12.6 carat and 10.0 carats, the company said. So far a total of 5,087 carats has been unearthed at the mine at an average grade of 13.5 cpht.

Last month, Stellar sold 733 gem quality carats from Baoulé at an average value of $266 per carat as part of a larger sale. One 5.5 cpht diamond sold for more than US$25,000.

Karl Smithson, chief executive, said: "Good progress continues to be made from trial mining at Baoulé.

“Our objective is to produce 15,000 carats from this exercise to enable us to determine the grade, value and presence of large stones in the pipe, with a view to using this information to consider a decision to advance Baoulé to commercial scale mining.“

7 May 2015
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")


Baoulé Diamond Sale

Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces that its next diamond sale of up to 4,439 carats from trial mining of its Baoulé kimberlite project in the Aredor area of Guinea will take place in Dubai and Antwerp via the eDiamond auction platform during May. The sale process will include gem quality stones up to 12.6cts in size.

The goods will be available to view in the offices of eDiamond in Dubai from the 10 to 13 May and in Antwerp from the 18 to 25 May with the auction expected to close at the end of May 2015.

Interested and compliant qualified groups can arrange to view the goods by registering with eDiamond.

This second diamond sale is part of the Company's anticipated regular sales process from the trial mining of Baoulé where a total of 15,000 carats are targeted in order to establish the diamond grade, value and presence of large diamonds in the kimberlite pipe.


About Stellar Diamonds plc

Stellar is an AIM quoted (AIM: STEL) West African focused diamond development company which has commenced trial mining of its Baoulé kimberlite in Guinea, and is progressing the 1.45 million carat Tongo Dyke-1 resource in Sierra Leone through the mining licence application process. In addition, Stellar holds the 3 million carat Droujba project in Guinea and continues to pursue diplomatic channels to ensure the proper reinstatement of its Kono licences in Sierra Leone.

http://www.moneyam.com/action/news/showArticle?id=5031718

Stellar Diamonds and their Tongo Kimberlite Project get a mention in the latest 'African Mining' magazine:

http://www.myvirtualpaper.com/doc/brookepattrick/african_mining_may-june_2015/2015051301/17.html#16

and relates to this announcement:

Application for Mining Licence at Tongo Kimberlite Project, Sierra Leone

6 Month Chart

5 Year Chart

BIG PICTURE - Stellar Diamonds gleaming in Guinea
By Andrew Neil
May 15 2015

Twelve months ago Stellar Diamonds’ (LON:STEL) Baoulé mine was tipped to transform the company’s fortunes.

Back then, the firm was still building roads and lugging equipment to its 75% owned site, located in the heart of the Aredor diamond district in Guinea.

A year on, and after fast-tracking trial mining at the West African operation, Baoulé is generating substantial carats and cash flow for the business.

“We’ve become more of a development company than an exploration company,” Stellar’s chief executive Karl Smithson told Proactive. “That’s been a key change for us.”

To date, diamond production from initial trial mining at Baoule has recovered 34,958 diamonds, weighing 5,087 carats.

Sales of up to 4,439 carats will take place in Dubai and Antwerp this month and will include gem quality stones up to 12.6 carats in size.

It follows an earlier sale of 733 gem quality carats from Baoulé at an average value of US$266 per carat.

One diamond sold for more than US$25,000.

Stellar’s plan is to produce and sell a total of 15,000 carats from the site this year, raising between US$2-3mln.

All of which is being used to establish the overall diamond grade, value and presence of large stones in the kimberlite pipe.

“Essentially it’s a self-funded evaluation exercise,” explains Smithson.

“We’ll be recycling all the funds back into the project. That way, Baoule becomes a lot more tangible from an investment perspective.”

Still, the firm would need to raise between US$50mln and US$100mln to move to full commercial-scale mining.

That requires a track record of production and a definitive resource study.

Hence why Stellar’s trial mining is an important early indicator of the mine’s future potential.

“In the long run, if we can prove Baoule’s economically viable, potentially, we could be mining 2mln tonnes of deposit annually,” said Smithson.

“At current grades, that could produce 300,000 carats with potential revenues of US$40-50mln each year.”

Clearly, that’s a major operational step up, but the early work could count for a lot.

In a recent note, Austin McKelvie, analyst at Daniel Stewart, said Stellar is already establishing itself as a supplier of regular, high quality diamonds to the markets of the world from the mine in Guinea.

Another broker, Sanlam Securities, has a 'speculative buy' rating on Stellar’s shares, targeting 1.86p with current prices at 0.9p.

Sanlam is just as keen on the firm’s second project in Tongo, which has an inferred resource of 1.45mln carats.

Bulk sampling has been completed at the project in Sierra Leone, despite the Ebola crisis.

In April, Stellar lodged its application for a mining licence at the site as part of its new fast-track plan.

All of the data compiled so far on the deposit is being pulled together for a preliminary economic assessment.

This will be used instead of a previously planned definitive feasibility study and will cut costs.

Smithson says moving the site to the mining licence application stage is a major milestone for the project.

Meanwhile, there is a clear will to support efforts to build the mine – which can offer a positive contribution to the post-Ebola social and economic reconstruction of the area.

Like most companies in the region, Stellar had to adjust its operations last year to address the threat of the Ebola outbreak.

Guinea has been the least affected of the West African countries, so work Baoulé hasn’t been impacted.

But in Tongo, one of the worst affected areas in Sierra Leone, Steller had to temporarily lock down its site.

Austin McKelvie, analyst at Daniel Stewart reckons the Ebola concerns have taken 50% off Stellar’s the share price since May last year.

However, now reckons the shares are undervalued and is currently considering his target price.

Smithson, meanwhile, reckons it’s only a matter of time before Stellar’s value picks up.

“There’s no high-risk exploration left,” he said.

“We’ve reached the development end of the curve and have a better understanding of grades, value, levels of production.

“As we progress, people will sit up and realise this is a different company altogether.”

28 May 2015
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")

Strong Revenues from Baoulé Diamond Auction


Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces sales of US$505,000 from the auction of diamonds from its 75% owned, Baoulé kimberlite pipe in Guinea ("Baoulé" or "the Project"). This brings sales to date for 2015 to over US$922,000, of which US$700,644 are derived from the trial mine evaluation of Baoulé.

Highlights from Baoulé sales:


· Latest diamond auction realises US$505,000 before costs

· 6 lots totalling 48.12cts of +5ct stones sold for US$3,510.17 per carat ($168,909.23)

· Revenue to date of US$700,644 from 5,173 carats at an average of US$135 per carat

· Latest run of mine parcel of 2,822 carats realised an average price of US$156 per carat

· Trial mine evaluation continuing with the objective to yield 15,000 carats for sale and valuation



Stellar Diamonds Chief Executive Karl Smithson commented:

"We are delighted with the results from the latest diamond sale from Baoulé via the online auction eDiamond platform. The presence of larger, high value stones and the stability in the rough diamond market has resulted in an average price of US$156 per carat for the latest Baoulé "run of mine" parcel. Stellar's total revenue from diamond sales in 2015 currently stands at US$922,000, of which US$700,000 is derived from Baoulé. Trial mining is on-going and further diamond sales are targeted for the coming year."



About Stellar Diamonds plc

Stellar is an AIM quoted (AIM: STEL) West African focused diamond development company which has commenced trial mining of its Baoulé kimberlite in Guinea, and is progressing the 1.45 million carat Tongo Dyke-1 resource in Sierra Leone through the mining licence application process. In addition, Stellar holds the 3 million carat Droujba project in Guinea and continues to pursue diplomatic channels to ensure the proper reinstatement of its Kono licences in Sierra Leone.

http://www.moneyam.com/action/news/showArticle?id=5045093

price 1p

STEL's strong revenues from diamond auction

Stellar Diamonds confirms sales of US$505,000 from the auction of diamonds from its 75%-owned, Baoulé kimberlite pipe in Guinea. This brings sales to date for 2015 to over US$922,000, of which US$700,644 are derived from the trial mine evaluation of Baoulé.

Highlights from Baoulé sales:
· Latest diamond auction realises US$505,000 before costs
· 6 lots totalling 48.12cts of +5ct stones sold for US$3,510.17 per carat ($168,909.23)
· Revenue to date of US$700,644 from 5,173 carats at an average of US$135 per carat
· Latest run of mine parcel of 2,822 carats realised an average price of US$156 per carat
· Trial mine evaluation continuing with the objective to yield 15,000 carats for sale and valuation

hmmmmm.....more like that song from James...


Smithson, meanwhile, reckons it’s only a matter of time before Stellar’s value picks up.

“There’s no high-risk exploration left,” he said.

“We’ve reached the development end of the curve and have a better understanding of grades, value, levels of production.

“As we progress, people will sit up and realise this is a different company altogether.”

http://www.proactiveinvestors.co.uk/companies/news/106811/big-picture-stellar-diamonds-gleaming-in-guinea-106811.html

14 August 2015
AIM: STEL
Stellar Diamonds plc

Issue of Convertible Loan Note and Grant of Warrants

Proposed capital re-organisation

Director's loan

Stellar Diamonds Plc (the "Company" or the "Group"), the London listed (AIM: STEL) diamond development company focused on West Africa, announces that it has today raised US$330,000 (approximately £211,200) by way of the issue of a new unsecured convertible loan note ("Note") to Deutsche Balaton AG ("Deutsche Balaton").

Additionally the Company has granted Deutsche Balaton a warrant to subscribe for new ordinary shares for an aggregate subscription price of US$330,000 (£211,200) as further detailed below ("Warrant"). The net proceeds of the Note will be used for the near term working capital requirements of the Group.

CEO Karl Smithson commented:

"Deutsche Balaton share our vision for the development of a significant hard rock diamond mine from our portfolio of advanced projects in West Africa. In what remains a challenging market for the natural resource sector we welcome and value the support and credentials of Deutsche Balaton who we believe will be a long term strategic investor in the Company.

It is necessary for Stellar to undertake a capital reorganisation in order to amend the nominal value of our shares relative to the price at which we are currently able to issue new shares. As such, it is intended that the Company's shares will be consolidated and sub-divided. The Directors consider that the participation of Deutsche Balaton and the proposed share re-organisation are important developments in the transformation of Stellar from a junior explorer in to an established diamond producer."

Further Information

Deutsche Balaton AG is a German private equity investment company founded in 1991 and based in Heidelberg. Its shares are traded on the Frankfurt Stock Exchange (Regulated Unofficial Market, Open Market, Entry Standard) and it is an investor in public and private companies across a range of sectors, in addition to investing in other areas such as fixed-interest securities. Investments are typically held over the long term with a view to creating an attractive return for its shareholders.

The terms of the Note and the Warrants are set out below.

Conversion of the Note into ordinary shares in the Company ("Conversion") and exercise of the Warrant ("Exercise") is conditional on, inter alia, approval by an appropriate resolution of the shareholders of the Company of a share reorganisation ("Proposed Capital Re-organisation"), further details of which are set out below. The Proposed Capital Re-organisation, if implemented, would result in the number of ordinary shares in issue being reduced by a factor of 50 times.

Shareholders should take particular note of references to "Existing Shares", which refers to the existing ordinary shares of 1 pence each (there are currently 811,929,724 Existing Shares in issue) and references to "Proposed New Shares", being those ordinary shares of 1 pence each in issue following completion of the Proposed Capital Re-organisation (expected to be approximately 16,238,595 Proposed New Shares in issue immediately following the Proposed Capital Re-organisation).

Key terms of the Note

The maturity date of the Note is 7 August 2017 ("Maturity Date") unless redeemed ("Redemption") or converted into ordinary shares in the Company prior to this date. The Maturity Date may be extended by a maximum of six months in the event that Conversion or Exercise is not possible at the Maturity Date (to the extent that the Note has not already been redeemed or converted or the Warrant has not already been exercised) as a result of, inter alia, Deutsch Balaton being in possession of unpublished price sensitive information. Interest is payable on the Note at 6% per annum to be paid in cash in arrears, with the first instalment to be paid on 7 August 2016 and thereafter every six months. On Conversion, any outstanding interest will become payable.

The Note may be converted into 37,473,600 Existing Shares at an effective price of 0.56 pence per Existing Share. The Note may be converted into ordinary shares in whole, but not in part.

The Note may be redeemed in cash at any time at the Company's discretion providing that 10 weeks' notice is given to Deutsche Balaton. Deutsche Balaton may, at its sole discretion, require that the Note be converted into ordinary shares rather than redeemed. The Note may also be redeemed early in certain circumstances, including customary events of default.

Following Conversion and assuming that no other shares are issued by the Company between now and Conversion, Deutsche Balaton would be interested in 4.4 percent. of the Company's so enlarged issued share capital.

The Note is subject to standard anti-dilution provisions and protections in the event of further capital re-organisations in addition to the Proposed Capital Re-organisation (including in the event of an issue of new ordinary shares pursuant to the exercise of options held by employees or directors of the Company).

Details on the effect of the Proposed Capital Re-organisation on the number of shares to be issued pursuant to Conversation are set out below.

Key terms of the Warrant

The Company has granted Deutsche Balaton a warrant to subscribe for a total number of 59,957,900 Existing Shares for an aggregate subscription price of US$330,000, equivalent to an exercise price of approximately 0.35 pence per Existing Share, in order that assuming Conversion and Exercise in full, Deutsche Balaton may own in total up to 10.7 percent. of the Company's so enlarged share capital.

The Warrant is only exercisable following conversion of the Note and may be exercised at any time commencing from the date of Conversion and ending on the Maturity Date of the Note. The Warrant is only exercisable in the event that the Proposed Capital Re-organisation has occurred and may only be exercised in whole and not in part.

The Warrants are subject to standard anti-dilution provisions and protections, in the event of further capital re-organisations in addition to the Proposed Capital Re-organisation.

Proposed Capital Re-organisation

The Companies Act prohibits companies from issuing shares at a price below their nominal value. The terms of the Note and the Warrants are such that the effective issue price of Existing Shares to Deutsche Balaton, were Conversion or Exercise to occur, would be below the current nominal value of 1 pence per Existing Share.

Accordingly, it is the Directors' intention that a capital re-organisation be carried out in due course to allow Conversion and Exercise to occur.

Subject to publication of a shareholder circular and passing of resolutions by shareholders at a general meeting, it is intended that the Proposed Capital Re-organisation will consist of two elements:

· every 50 Existing Shares of 1 pence each will be consolidated into 1 consolidated share of 50.0 pence ("Consolidated Shares") ("Consolidation"); and

· immediately following the Consolidation, it is intended that each Consolidated Share will then be sub-divided into 1 new ordinary share of 1 pence ("Proposed New Share") and 1 new deferred share of 49 pence ("New Deferred Share") ("Sub-Division").

In the event of implementation of the Proposed Capital Re-organisation, shareholders would own 1 Proposed New Share of 1 pence nominal value and 1 New Deferred Share for every 50 Existing Shares that they own prior to the Proposed Capital Re-organisation. It is not expected that the percentage holding of individual shareholders in the Company would change as a result of the Proposed Capital Re-organisation. The rights attaching to the Proposed New Shares would be identical in all respects to those of the Existing Shares and the deferred shares would have carry no voting rights or be admitted to trading on AIM. Full details of the Proposed Capital Re-organisation will be set out in a shareholder circular and notice of general meeting.


Expected effects of the Proposed Capital Re-organisation on Conversion and Exercise

The result of the Proposed Capital Re-organisation (being the Consolidation and the Sub-Division), if approved by shareholders, would be to reduce the number of ordinary shares in issue by approximately 50 times and, accordingly, assuming normal market conditions, to increase the price at which the Company's ordinary shares would trade to approximately 50 times the value at which the Existing Shares currently trade. The nominal value of 1 pence each per Existing Share would remain unchanged at 1 pence per Proposed New Share under these proposals.

Assuming shareholder approval of the Proposed Capital Re-organisation:

· Conversion, if it occurred would result in the issue of 749,472 Proposed New Shares (being 37,473,600 Existing Shares divided by 50 times) issued at an effective share price of approximately 28.2 pence per Proposed New Share;

· Exercise, if it occurred in full would result in the issue of up to 1,199,158 Proposed New Shares (being 59,957,900 Existing Shares divided by 50 times) issued at an effective share price of approximately 17.6 pence per Proposed New Share.

In the event that Conversion and Exercise occurs, Deutsche Balaton will be interested in approximately 10.7 percent. of the so enlarged share capital (assuming no other issue of shares occurs between now and Exercise).

Since conversion of the Note and exercise of the Warrant is conditional on the Proposed Capital Re-organisation being implemented, the number of Existing Shares referred to above following Conversion or Exercise is for illustrative purposes only.

It is expected that a further announcement on the Proposed Capital Re-organisation will be made in due course together with publication of a circular and notice of general meeting to effect the Proposed Capital Reorganisation. In the event that the Proposed Capital Re-Organisation does not occur, Deutsche Balaton will be unable convert the Note into Existing Shares or exercise its Warrant.

Potential further issue of convertible notes

The Company is currently in advanced discussions with Deutsche Balaton with regards to securing a larger convertible loan note (and associated warrants) over and above the Note ("Additional Note") to provide sufficient working capital for the Group for the period through to expected completion of the Tongo mining licence approval process.

This approval process is expected to be completed later in 2015, although there is no guarantee of this timing and is subject to regulations the Mines Act (2009) of Sierra Leone, which allows for conversion of an exploration licence to a mining licence on completion of a mine plan, financial model, environmental impact study and environmental licence. Stellar is well advanced on all of these aspects of the mining licence approval process and a more comprehensive update will be issued in the near future. Whilst discussions with Deutsche Balaton are at an advanced stage, there is no guarantee that the Company will enter into definitive agreements in respect of the Additional Note.

Director's loan

The Company has received an unsecured loan of US$45,000 ("Loan") from Peter Daresbury, Non-Executive Chairman of the Company, in order to contribute to the Company's working capital position during the course of its negotiations with Deutsche Balaton. There is no interest payable on the Loan and the Loan does not have a fixed repayment term. It is anticipated that the Loan will be repaid in the event that further funds are raised from Deutsche Balaton or another investor. The Loan constitutes a related party transaction under the AIM Rules for Companies. The Directors who are independent of the Loan consider, having consulted with the Company's nominated adviser, believe that the terms of the Loan are fair and reasonable in so far as the Company's shareholders are concerned.

Exchange rate

An exchange rate £0.64: US$1.00 has been assumed for the purpose of this announcement.


About Stellar Diamonds plc

Stellar is an AIM quoted (AIM: STEL) West African focused diamond development company which is continuing trial mine evaluation of its Baoulé kimberlite in Guinea, and is progressing the 1.45 million carat Tongo Dyke-1 resource through the mining licence application process. In addition, Stellar holds the 3 million carat Droujba project in Guinea and continues to pursue channels to ensure the proper reinstatement of its Kono licences in Sierra Leone.
** ENDS **

http://www.moneyam.com/action/news/showArticle?id=5094837

Just catching up:

24 August 2015
AIM: STEL

Stellar Diamonds plc

Positive PEA on Tongo Project and Mining Licence Application, Sierra Leone

Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces the results of the preliminary economic assessment ("PEA") from its Tongo kimberlite diamond project in Sierra Leone ("Tongo" or "the Project").


Independent consulting company Paradigm Project Management ("PPM") was retained by the Company to conduct the PEA over the 1.45 million carat inferred resource of the Tongo Dyke-1 kimberlite, one of four kimberlite dykes at the Project. The objective was to define updated project economics for both surface and underground mining of the diamond resource in support of the mining licence application. This independent PEA report can be found on the Company's website.



Tongo Dyke-1 PEA Highlights:

· 18 year life of mine from both surface and underground mining yielding 955,930 carats

· Surface mining in years 1-4 targeting a yield of 117,806 carats providing early cash flow

· Modelled diamond resource grade of 120cpht and diamond value of US$270 per carat

· Low cost capex requirement of US$24.2 million to establish surface and underground mine

· Gross mine revenues of US$386.7 million

· Pre-tax NPV10 of US$53.2 million and IRR of 31%

· Significant potential to increase mine life and revenues with resource open at depth

· Mining licence application to be submitted



Chief Executive Karl Smithson commented:

"The Tongo PEA has delivered robust economics which support the development of an open pit and subsequent underground mine. Early cash flow is expected to be generated from the initial surface mining but the mine also represents a long-term and sustainable operation which has the potential to generate solid cash flows from the sale of its very high quality, high grade diamonds over many years. Stellar considers that the Tongo mine can be further improved and extended with the development of additional diamond resources from nearby high-grade kimberlites that we have previously identified and tested.

"Importantly for Sierra Leone, this mine will contribute significant employment and community development opportunities in an area that has been adversely affected by the Ebola crisis, which has now thankfully been eradicated from the area of operation for over six months. As such we will work closely with all stakeholders to ensure the successful development of this mine for all concerned. We expect to formally submit our application for the mining licence in the near future, once our environmental impact assessment study has been completed and our environmental licence granted.


"I look forward to updating shareholders over the coming months as we continue towards the development of the Tongo mine to complement our Baoulé Kimberlite Pipe Project in Guinea where Trial Mining has already generated revenues from diamond sales."

More from link below:

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Stellar Diamonds boss on potential upside at Tongo project

"2 November 2015
AIM: STEL

Stellar Diamonds plc
("Stellar" of the "Company")

Capital Reorganisation

Issue of convertible loan notes and warrants

Cancellation of existing convertible loan note and warrant

Conditional subscription of 7,594,692 Subscription Shares

Approval of a waiver of Rule 9 of the City Code on Takeovers and Mergers

and

Notice of General Meeting



Highlights

· Proposed capital reorganisation: every 50 existing ordinary shares of 1 pence each to be consolidated into 1 consolidated share of 50.0 pence and each consolidated share will then be sub-divided into 1 new ordinary share of 1 pence ("New Ordinary Share") and 1 new deferred share of 49 pence;

· Convertible loan note to raise US$1.65 million (approximately £1.06 million). Conversion at an effective price of 0.56 pence per existing ordinary share (28.18 pence per New Ordinary Share);

· Issue of warrants with aggregate exercise price of US$1.65 million. Effective exercise price of 0.35 per existing ordinary share (17.61 pence per New Ordinary Share);

· Subscription to raise £497k at an effective price per existing ordinary share of 0.131 pence (6.55 pence per New Ordinary Share);

· Use of Proceeds to enable Stellar to apply for the Tongo mining licence, resume trial mining at Baoulé and for general working capital needs."


GENERAL MEETING AND ADMISSION TO AIM

Subject to passing of the necessary resolutions at the General Meeting to be held at 10.00 a.m. on 19 November 2015 at the offices of Daniel Stewart at 33 Creechurch Lane, London, EC3A 5EB, (further details of which are set out below), Admission to trading on AIM is expected to occur on 20 November 2015. A further announcement will be made in due course following the General Meeting.

Announcement in full via link below:

http://www.moneyam.com/action/news/showArticle?id=5143606

Stellar Diamonds set to bring in £1.26mln for working capital
02 Nov 2015

Stellar Diamonds (LON:STEL) is to bring in around £1.26mln net via a convertible loan note agreement and subscription deal, which will be used for ongoing working capital, it said, as it unveiled a big reorganisation of its shares.

The AIM firm wants to complete its Tongo mining licence application in Sierra Leone and resume the trial mining of the kimberlite pipe at Baoulé in Guinea which has to date yielded over 6,400 carats.

The miner said it would issue new convertible notes to Deutsche Balaton AG to raise around £1.06mln. It will also issue Deutsche Balaton warrants to subscribe for new Stellar shares worth around £1.06 million.

Conditionally, Stellar will also raise around £497,452 via a subscription through the issue of 7.6mln new subscription shares following the capital reorganisation.

That reorganisation will see every 50 shares consolidated into a single share of 50p each, which will then be sub-divided into one new share of 1 pence and one deferred share of 49 pence.

The aim at Baoulé remains to process 100,000 tonnes of kimberlite to justify the next stages of project development.

Diamond sales from trial mining evaluation have to date realised over US$700,000 with the latest sale in May 2015 achieving an average price of US$156 per carat.

Due to current weak rough diamond market conditions, however, Stellar expects the next diamond sale to be pushed back to the first quarter of 2016.

The rainy season in Guinea started in July this year which led to a hiatus in the trial mining.

It is expected that trial mining will recommence in this month (November), which the firm believes should result in an increase in diamond inventory for the next export and planned sale.

Shares in Stellar eased 20% to 0.30p.

9 November 2015
AIM: STEL
Stellar Diamonds plc

SIERRA LEONE DECLARED EBOLA-FREE


Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, welcomes the announcement made by the World Health Organisation on Saturday 7 November 2015 that Sierra Leone is Ebola-free after going 42 days without any new infections. The Company, which is in the process of preparing the submission for its mining licence for the Tongo kimberlite diamond project in Sierra Leone ('Tongo' or the 'Project'), remains committed to supporting the recovery of Sierra Leone and the wider West African region.

Chief Executive Karl Smithson commented:

"Sierra Leone's status as Ebola-free is a huge achievement for both the country and the people who supported the fight against the virus; we would like to congratulate the resilience and dedication shown by all those involved.

"Stellar has also played its part in the fight against Ebola in Sierra Leone and Guinea and through various initiatives has contributed to the well-being and protection of its employees and local communities.

"The Company will continue to support Sierra Leone and Guinea through ongoing project development. The Tongo project is moving through the mining licence application stage and hopefully towards mine development, which will create both extensive employment and numerous community development opportunities that will significantly contribute towards the post-Ebola economic recovery in Sierra Leone. We note that whilst Ebola cases remain in Guinea these are dwindling and we hope that in the near future the virus can be fully eradicated from both Guinea and the West African region as a whole."

http://www.moneyam.com/action/news/showArticle?id=5148737

12 November 2015
AIM: STEL
Stellar Diamonds plc

UNSECURED BRIDGE LOAN



Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces that it has entered into a bridge loan agreement for an amount of USD150,000 ("bridge loan") from Deutsche Balaton AG ("Deutsche Balaton"), a new institutional investor pending the passing of certain resolutions at the General Meeting ("GM") scheduled for 19th November 2015. At the GM a series of resolutions are proposed in relation to, inter alia, a subscription, issue convertible loan notes and a capital reorganisation as announced on the 2 November 2015. Subject to the resolutions being passed, the Company will receive funds of £1.56 million from Deutsche Balaton and other investors ("the Fund Raise").

An interest rate of 8% per annum is charged on the Bridge Loan though the loan will be repaid no later than the 30th November 2015 from the proceeds of the Fund Raise. Stellar's Chairman, Lord Daresbury, has undertaken to personally guarantee the Bridge Loan.

The proceeds of the Bridge Loan will enable Stellar to make immediate steps towards the recommencement of the trial mining at Baoulé and the submission of the Tongo mining licence application and not have to wait until the General Meeting has taken place.

http://www.moneyam.com/action/news/showArticle?id=5151861

SEE LINK AT BOP FOR FULL DETAILS:

19 November 2015
AIM: STEL

Stellar Diamonds plc
("Stellar" of the "Company")

RESULT OF ANNUAL GENERAL MEETING

CAPITAL REORGANISATION

FUNDING UPDATE

Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, announces that at the General Meeting (the "GM") held earlier today, all resolutions were duly passed.


The resolutions passed included those relating to a consolidation and sub-division of the Company's share capital (the "Capital Reorganisation"), details of which were set out in the circular sent to shareholders on 2 November 2015, which is available on the Company's website at www.stellar-diamonds.com ("Circular"). A summary of the Capital Reorganisation was also announced by the Company on 2 November 2015 ("Prior Announcement").


Unless otherwise stated, capitalised terms used in this announcement are as defined in the Prior Announcement and the Circular.

Following the passing of the resolutions required to effect the Capital Reorganisation at the GM today, every 50 existing ordinary shares of 1 pence each ("Existing Ordinary Shares") will be consolidated into 1 consolidated ordinary share of 50 pence each ("Consolidated Share"). Immediately afterwards, each of the Consolidated Shares will be sub-divided into 1 new ordinary share of 1 pence each ("New Ordinary Share") and 1 new deferred share of 49 pence each ('New Deferred Shares').

http://www.moneyam.com/action/news/showArticle?id=5156988