Toronto-listed SearchGold Resources has picked up more than 4.8 million shares in float-hope Stellar Diamonds for 87.1p each, in a pre-IPO financing worth £4.2 million. Stellar has also issued SearchGold with more than 2.4 million warrants with a two-year term and exercise price of £1.20 per share on a ‘1 for each 2 placing shares’ basis, as well as more than 260,000 adviser’s options with a two-year term and exercise price of 87.1p per share.

SearchGold has re-organised its diamond assets along with its AIM and TSX-listed partner, Mano River Resources, to create Stellar, an integrated diamond company.

Stellar has acquired a 100% interest in Mano’s diamond assets in Liberia, Sierra Leone and Guinea. Stellar has also acquired from SearchGold its 50% interest in the Guinean joint venture company, Guinean Diamond Corporation, which holds the Bouro/Mandala alluvial project.

Stellar CEO Karl Smithson: "We are delighted with the level of financial support received for Stellar from a number of Mano’s existing shareholders and new institutional investors.”

“The completion of the pre-IPO financing represents a significant milestone for Stellar and the corporate strategy of Mano. After this financing Stellar has an enlarged issued share capital of 28.1 million shares and a capitalisation of £24.5 million based upon the placing price of 87.1p per share. We hope to add significant value to Stellar in the coming months and to list the company on AIM before the end of 2007,” he said.

“In the meantime, our multiple diamond exploration and joint venture programs in West Africa are ongoing."