The diamond development company was also asking qualifying shareholders to subscribe for new ordinary shares to raise up to £250 000 at 5.5 pence each through an open offer.
Certain investors had also subscribed for ordinary shares at 5.5 pence per share that would equal gross proceeds of £76 000 pursuant to the conditional placing.
Therefore the total gross amount raised by the company in relation to the placing and open offer was expected to be not less than £400 000.
Proceeds of the placing and open offer would be used to progress the recently announced proposed Tribute mining agreement for the Tonguma project as well as repay creditors, provide working capital and pay the Tongo environmental licence fee.
Stellar said last week that it no longer intends to acquire Tonguma and would instead enter into a Tribute mining agreement with Octea Mining, which would allow it to mine the Tonguma licence area alongside its own Tongo project in Sierra Leone.
Meanwhile, the company said it had limited working capital and was expecting its shares to remain suspended until completion of the placing.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished