John Teeling is to resign as chairman of West African Diamonds on Monday after shareholders approve the reverse takeover by Stellar Diamonds.
Mr Teeling formed WAD from West African assets of AIM-listed African Diamonds in October 2006. Since the demerger from African Diamonds, the company has added further licences to its existing Guinea portfolio as well as developing projects in Sierra Leone.
West African and Stellar Diamonds have merged into a new entity to be called Stellar Diamonds. Existing West African shares are being consolidated into Stellar Diamonds shares on a 5:1 basis.
The merger has been accompanied by a fresh fundraising of £5million and the new entity will begin trading on the AIM on Monday.
“I wish the new board and management every success. They have a good platform on which to build a serious African based diamond mining company," said Mr Teeling.
"There is further potential in the two producing mines, while the four kimberlite prospects are exciting. Diamond prices have shown a rapid recovery, which will help cash flow. This, plus the £5 million cash raised, will offer opportunities for organic and acquisitive growth," he added.