(Ecofin Agency) - LSE-listed Stella Diamonds with diamond mines in Sierra Leone, announced last Monday that it intends to raise £530,000 to finance its Tongo-Tonguma project in the country.

The fundraising will take place in two steps. The first which will result in the mobilization of £330,000 will occur through the placement of 10.15 million new ordinary shares at a unit price of 3.25 pence, while in the second, £200,000 will be raised by issuing 6.1 million shares at 3.25p per share.

The firm plans to use proceeds of the operation to partly pay for environmental licence for Tongo, enabling it to get operating permit for the project. Besides, the money will be used to renew Tonguma’s licence and meet working capital needs for the Tongo-Tonguma project as well as reimburse some of its lenders.

In addition to Sierra Leone, Stellar Diamonds is also active on a kimberlite project in Guinea, and holds some exploration licences in Liberia.

Louis-Nino Kansoun