MONTREAL, QUEBEC--(Marketwired - Jan. 25, 2017) - John Cumming, President and CEO of Stellar AfricaGold Inc. (TSX VENTURE:SPX) ("Stellar" or the "Company") is pleased to announce that Stellar to buy the remaining 49% interest in the advanced Balandougou Gold Project in Guinea.
Effective January 23, 2017, UltraGold Holding LLC ("UltraGold) will convey to GoldenFrank Resources Inc. ("Goldenfrank"), a 100% owned subsidiary of Stellar, all of UltraGold's 49% right, title and interest in and to the Balandougou Gold Project properties. GoldenFrank will assume all liabilities associated with the properties.
The Parties also agreed to terminate the Balandougou Joint Venture Agreement dated February 2009, and in consideration of the termination of the joint venture Stellar will issue 750,000 shares of Stellar to UltraGold. UltraGold will retain a 1.5% net smelter return royalty capped at US$3.0 million at which time the royalty terminates.
"The consolidation of the ownership of the Balandougou Gold Project is a very important first step for Stellar" commented CEO John Cumming. "While in the right circumstances joint ventures can serve an important purpose, I think it is preferable for a junior resource company, whenever possible, to retain sole ownership of a project and control both the course of exploration and the budgets. Although I take pride in making this announcement, my involvement was consultative and advisory only. The successful negotiations were conducted by Stellar's past president and now VP Exploration, Maurice Giroux, so the credit for this achievement is his."
About Stellar AfricaGold Inc.
Stellar AfricaGold Inc. is a Canadian-based mineral exploration company headquartered in Montreal, Quebec, with gold projects in West Africa and Quebec.
The Company is pursuing the promising gold potential of its Balandougou Project in Guinea, with particular focus on the B3 oxide zone which is at an advanced exploration stage, and its early stage Namarana project in southern Mali.
The Company also owns 100% of the Opawica, Eastmain Belt North and South and Terrax Option, all in the Chibougamau and James Bay area of Quebec, Canada.
For further details about the Company's exploration activities visit Stellar's website at www.stellarafricagold.com.
