MANA Man.Assd.Csh

 

TIDMMANA 
 
RNS Number : 6007M 
Mano River Resources Inc 
02 February 2009 
 

 
 
 
 
News Release 
 
 
TSX-V: MNO 
AIM:     MANA 
 
 
2 February 2009 
 
 
 
 
Stellar Diamonds Closes a GBP3.05 million pre-IPO Non-Brokered Placement 
and Operations Update 
 
 
Mano River Resources Inc the TSX-V and AIM-listed exploration and development 
company focused on iron ore, diamonds and gold in west Africa, is pleased to 
announce that its majority owned subsidiary Stellar Diamonds Ltd ("Stellar" or 
"the Company") has completed a pre-IPO non-brokered placing of 15,248,490 new 
ordinary shares (the "Placing Shares") of 1 pence each in Stellar at 20 pence 
per share raising gross proceeds of GBP3.05 million (the "Placing").  In 
addition the company settled debt of GBP678,192 through the issue of 3,390,961 
shares at the same price of 20 pence per share. 
 
 
Placing Highlights: 
 
 
  *  Stellar raises GBP3.05 million to continue development of key near term 
  production projects to achieve cash flow 
 
 
 
  *  Stellar converts GBP678,192 in debt to equity, primarily owed to Mano River and 
  the Board and Management 
 
 
 
  *  Non-Executive Chairman Lord Daresbury purchased 550,000 shares for GBP110,000 
 
 
 
  *  Mano purchased 6,920,220 shares for GBP1,384,044 and converted GBP622,356.20 
  debt for a further 3,111,781 shares and remains largest shareholder in Stellar 
  with 59.62% of the enlarged issued capital 
 
 
 
  *  Placing Shares represent 21% of Stellar's enlarged issued share capital 
 
 
 
 
The proceeds from the Placing will be used to continue development of near term 
production projects at the Kono underground trial mining project in joint 
venture with Petra Diamonds in Sierra Leone and the 100% owned Mandala alluvial 
diamond project in Guinea. Additionally, the proceeds will be used for general 
working capital purposes. 
 
 
The Placing Shares and shares for debt were issued together with warrants on the 
basis of one warrant for every Placing Share subscribed, each warrant entitling 
the holder to subscribe for one ordinary share in the Company at 25 pence per 
share, exercisable until 30 June 2010 ("Warrants"). 
Following the Placement, Stellar has an enlarged issued share capital of 
49,097,755 ordinary shares with 21,920,308 warrants, 260,390 adviser's options 
in issue and 2,992,500 share options in issue. 
 
 
Operational Update 
 
 
Kono Project, Sierra Leone 
 
 
From 1st January 2009 Stellar has elected to sole fund the Kono project for 2009 
(Budget $2.8 million) and will reinvest all diamond sales revenues in the 
continued development of the project.  At the end of 2009 the Company's joint 
venture partner Petra Diamonds will have the option to reimburse Stellar 51% of 
the project costs to maintain its 51% equity in the project, or dilute. The 
current technical team will remain on the project and Petra will continue to 
offer technical advice as required. 
 
 
Trial stope mining at the Pol-K shaft is ongoing at the 65 metre level below 
surface level and shaft sinking is continuing to the 96 metre level where new 
stope faces will be opened by April 2009, thus increasing the production 
tonnage. Some 3,159 carats have been produced to date and an export of 1,892 
carats is being prepared for shipment to Antwerp for valuation and possible sale 
in March 2009 to test market conditions. Diamonds of 11.95 carats and 11.40 
carats are included in this parcel. The in-situ grade of the Pol-K kimberlites 
remains encouraging at 61 carats per hundred tons. 
 
 
Mandala Project, Guinea 
 
 
Project development continues on track. Construction of a 50km stretch of gravel 
access road has been completed and the 100 ton per hour DMS processing plant is 
currently being trucked to site. Construction and commissioning of the plant is 
scheduled for end of March-09, after which commercial production is expected to 
commence. 
 
 
Exploration 
 
 
The Company has made significant progress at its various exploration projects 
and continues to build a strong pipeline of projects with significant potential 
to create additional value for the Company. However, the Company's Board has 
deemed it prudent to place Stellar's current exploration projects on care and 
maintenance in the short term until the Company is generating cash revenues and 
is self-financed. Stellar remains committed to strengthening its portfolio 
through the development of its portfolio of exploration projects in the mid to 
long term. 
 
 
Karl Smithson, CEO of Stellar commented: 
 
"We are very encouraged by the 
continued support demonstrated by our shareholders for the Company despite these 
difficult market conditions. The proceeds from the GBP3.0 million financing will 
enable Stellar to realise its near term objectives of generating cash flow from 
diamond revenues from two our key  projects in 2009 and beyond. 
"The Company's resources are now focused on our development projects at Kono in 
Sierra Leone and Mandala in Guinea. Both projects have made significant progress 
in the past few months and Stellar is now on the threshold of becoming a 
self-financing company which will be a very significant milestone. This will 
allow the Company the flexibility to continue to enhance our portfolio of 
projects and establish Stellar as a leading explorer and producer in West 
Africa." 
 
ENDS 
 
 
For further information on Mano River Resources and its exploration programme, 
you are invited to visit the Company's website at www.manoriver.com or contact 
one of the following: 
 
 
 
 
Stellar Diamonds Ltd. 
Karl Smithson +27 (21) 715 1990 
 
 
Mano River Resources Inc 
Luis da Silva, CEO                +44 (0) 20 7299 4212 
 
 
Evolution Securities Limited 
Simon Edwards / Chris Sim     +44 (0) 20 7071 4300 
 
 
Pelham PR 
Charles Vivian / James MacFarlane+44 (0) 20 7743 6670 
 
 
 
 
The TSX Venture Exchange has not reviewed and does not take responsibility for 
the adequacy or accuracy of this release 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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