Stellar, an exploration and mining development company operating in eastern Sierra Leone recorded a loss of $7.1 million in 2016 compared to a loss of $3 million in 2015, the company stated in its report.
“The loss after taxation for the year amounted to $7,058,000 including an impairment relating to the Kono project of $4,300,528 (2015: loss $3,015,682 including an impairment relating to other projects of $605,728),” according to the report.
The company relies mainly on raising funds from debt and equity at this stage of its operation. In 2016 the company applied for a large scale mining license for it Tongo project. The mineral advisory board approved and issuance of the license depended on the company obtaining an environmental impact assessment license.
The company proposed a joint venture agreement with Octea to explore its Tongo license and Octea’s adjacent Tonguma license to mine for diamonds. Both companies have cancelled the proposed joint venture and are working on a tribute agreement. The National Mineral Agency (NMA) is yet to approve the agreement.
Stellar is listed on the Alternative Investment Market (AIM) on the London Stock Exchange. The company raises funds from its equity to fund its operations. The company in a release on February 23 announced it raised £324,500 through the issue of 5.9-million new ordinary shares, at an issue price of 5.5p apiece. , it is looking to raise a further £250,000 at 5.5p apiece through an open offer this March.
Monday March 06, 2017