Stellar Diamonds PLC Amendments to Convertible Loan Notes (2631E)
05 May 2017 - 4:01PM
UK Regulatory
TIDMSTEL
RNS Number : 2631E
Stellar Diamonds PLC
05 May 2017
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION
TO US NEWS WIRE SERVICES.
5 May 2017
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")
Amendments to Convertible Loan Notes
Stellar Diamonds plc, the London listed diamond development
company focused on West Africa, announces that it has negotiated a
two month extension to the longstop dates with the noteholders
("Noteholders") of its two outstanding Convertible Loan Notes
("CLNs"). Details of the CLNs are contained in the announcements by
the Company of 2 November 2015, 6 October 2016 and 24 February 2017
and in particular, the two month extension relates to the longstop
dates referred to in the announcement of 24 February 2017.
Chief Executive Karl Smithson commented:
"Stellar is undergoing a transformation from an explorer to a
mine developer. I would like to thank the Noteholders for their
continued support as we progress towards the commercial development
of the 4.5million carat Tongo-Tonguma underground kimberlite
diamond mine in Sierra Leone. We have made key advances in recent
weeks in terms of signing the binding Tribute Mining Agreement and
signing the contract for the Front End Engineering and Design for
the initial mine development. With a low capex requirement of US$32
million, the proposed Tongo-Tonguma mine has the potential to be
the second largest kimberlite diamond mine in West Africa, with
forecast production levels of 200,000 carats per annum, generating
revenues of over US$45 million per annum over a minimum life of
mine of 21 years. I look forward to updating shareholders on our
progress."
Note on Related Party Transaction
For the avoidance of doubt, other than as set out in this
announcement, all other terms of the CLNs remain in force. By
virtue of Deutsche Balaton being a substantial shareholder of the
Company and Steven Poulton being a non-executive Director of the
Company, the amendments above constitute related party transactions
under the AIM Rules for Companies. The Directors who are
independent of the CLNs and associated warrants consider, having
consulted with the Company's Nominated Adviser, that the amended
terms of the CLNs are fair and reasonable in so far as the
Company's shareholders are concerned.
For further information contact the following or visit the
Company's website at www.stellar-diamonds.com.
Karl Smithson, Stellar Diamonds plc Tel: +44 (0) 20
CEO Stellar Diamonds plc 7010 7686
Philip Knowles, Tel: +44 (0) 20
CFO 7010 7686
Emma Earl Cairn Financial Advisers Tel: +44 (0) 20
Sandy Jamieson (Nominated Adviser) 7213 0880
Jon Bellis Beaufort Securities Tel: +44 (0) 20
Limited (Joint Broker) 7382 8300
Martin Lampshire Peterhouse Corporate Tel: +44 (0) 20
Finance (Joint Broker) 7469 0930
Rory Scott
Mirabaud Securities Tel: +44 (0) 20
(Financial Advisers) 7878 3360
Lottie Brocklehurst St Brides Partners Tel: +44 (0) 20
Charlotte Ltd 7236 1177
Page
About Stellar Diamonds plc
Stellar is an AIM listed (AIM: STEL) West African focused
diamond company with projects at the trial mining and mine
development stages in Guinea and Sierra Leone.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "will" or the negative of those, variations or
comparable expressions, including references to assumptions. These
forward looking statements are not based on historical facts but
rather on the Directors' current expectations and assumptions
regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the
amount, nature and sources of funding thereof), competitive
advantages, business prospects and opportunities. Such forward
looking statements re ect the Directors' current beliefs and
assumptions and are based on information currently available to the
Directors.
A number of factors could cause actual results to differ
materially from the results discussed in the forward looking
statements including risks associated with vulnerability to general
economic and business conditions, competition, environmental and
other regulatory changes, actions by governmental authorities, the
availability of capital markets, reliance on key personnel,
uninsured and underinsured losses and other factors, many of which
are beyond the control of the Company. Although any forward looking
statements contained in this announcement are based upon what the
Directors believe to be reasonable assumptions, the Company cannot
assure investors that actual results will be consistent with such
forward looking statements. Accordingly, readers are cautioned not
to place undue reliance on forward looking statements. Subject to
any continuing obligations under applicable law or any relevant AIM
Rule requirements, in providing this information the Company does
not undertake any obligation to publicly update or revise any of
the forward looking statements or to advise of any change in
events, conditions or circumstances on which any such statement is
based.
** ENDS **
This information is provided by RNS
The company news service from the London Stock Exchange
END
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