The public markets team at Birmingham-based law firm Cobbetts has advised AIM-quoted mining and exploration company Stellar Diamonds on its recent £6.2 million fundraising.
AIM-quoted Stellar focuses on the diamond region of West Africa where it has full rights over four projects in Sierra Leone and Guinea that are at various stages of development, from drilling through to bulk sampling to trial mining, as well as two projects in Guinea.
The Cobbetts team comprised corporate partners, Charles Bond and Sefton Collett.
Mr Bond said: “The outlook for the diamond market is continuing to improve. The AIM market presents a genuine opportunity to raise capital for expansion at a time when bank funding is still in short supply.
“We expect to see a continued increase in AIM market activity throughout 2011 on the back of rising commodity prices and increasing investor confidence.”
The funding will be used to accelerate the development of Stellar’s kimberlite portfolio, as well as to fund its general working capital requirements in line with its growth strategy.
Stellar also intends to use approximately £2 million for resource definition drilling and bulk sampling at its Droujba kimberlite pipe in Guinea.