SearchGold Resources Inc. (TSX VENTURE:RSG)(FRANKFURT:S1O) has announced the admission of Stellar Diamonds Limited (“Stellar”) to the AIM market of the London Stock Exchange (“AIM”).
Stellar has 96,581,432 outstanding shares, a market capitalisation of approximately GBP 19 million, and its shares have started trading on AIM under the symbol “STEL” on February 22nd 2010. In addition to the listing, Stellar raised GBP 5,000,000 with RBC Capital Markets, Stellar’s nominated adviser and broker.
Following the listing transaction and financing, SearchGold holds a 2.8% interest in Stellar. SearchGold has 2,672,629 Stellar shares, which, at a share price of GBP 0.1825, represents a value of GBP 488,000, or CAD$ 756,000 at an exchange rate of GBP 1 = CAD$ 1.55.
Philippe Giaro, President and CEO, commented on Stellar’s listing: “We are very pleased with this latest development which marks a significant milestone. The new liquidity and visibility provided by the AIM listing, the additional cash of GBP 5,000,000 and the technical and logistical synergies achieved with the acquisition of the Bomboko diamond project in Guinea, provide Stellar with the potential to become a leading diamond producer and explorer in Africa. This recent listing also further underlines SearchGold’s strategy to advance numerous assets through satellite corporate structures while retaining a specific focus for internal development, thereby optimizing its shareholder’s exposure to a maximum number of high potential situations.”
About Stellar Diamonds Limited (www.stellar-diamonds.com)
Stellar Diamonds plc is a newly listed diamond production and development company that was formed from the merger of Stellar Diamonds Limited and West African Diamonds plc. Stellar has a portfolio of projects in West Africa. Two projects in Guinea are in production, Mandala and Bomboko, which provide robust cash flow. At the time of the merger, Mandala had produced over 53,000 carats and Bomboko had produced over 2,000 carats, with both projects currently undergoing expansion programmes. Stellar also owns rights over four high-grade kimberlites that are the focus of further development. In Sierra Leone the Tongo and Kono projects comprise a series of kimberlite dykes, with the Kono project having produced 4,200 carats of diamonds through underground trial mining with Joint Venture partner Petra Diamonds. In Guinea the Droujba kimberlite pipe and the Bouro kimberlite dykes are located in proximity to the Mandala mine and demonstrate grades of up to 500cpht and 200cpht respectively.
About SearchGold Resources Inc. (www.searchgold.ca)
SearchGold Resources is a Canadian-based mining company primarily focussed on gold deposits in Africa with advanced gold projects in Gabon and Burkina Faso. SearchGold and partner Swala Resources plc recently completed a 114-hole RAB / RC drilling program, totaling 4,400 m on the Arae-Gassel property in Burkina Faso. Shares of SearchGold Resources Inc. are listed for trading on the TSX Venture Exchange as “RSG”; and the Frankfurt Stock Exchange as “S1O”.
