Vancouver / TheNewswire / October 27, 2017 - John Cumming, President and Chief Executive Officer of Stellar AfricaGold Inc., (TSX-V: SPX) ("Stellar" or the "Company") announces:
LOAN FACILITY
Stellar's Guinea subsidiary, MGWA Goldenfrank SARL, has reached an agreement on the commercial terms for a US$400,000 loan facility.
The loan proceeds will be used to finance completion of installation and assembly of the gravity separation mill at its Balandougou gold project, Guinea, and for start-up working capital for a 15,000 tonne bulk sample program.
The loan is with an arms' length entity, is unsecured, bears interest at 10% per annum and is for a 24-month term. Interest is capitalized for the first 8 months (until June 30, 2018) at which time blended principal and interest loan payments begin with the loan being retired over the remaining 16 months of the 24-month term (October 31, 2019).
Stellar has agreed to provide a collateral guarantee of repayment of the loan, and has granted to the lender a 24-month warrant to purchase up to 1,000,000 shares of Stellar at C$0.05 per share.
The loan facility and warrant are subject to the approval of the TSX Venture Exchange.
BALANDOUGOU GOLD PROJECT BULK SAMPLE UPDATE
Stellar is developing the promising gold potential of the advanced exploration stage B3 Zone of its 100% owned Balandougou Gold Project in Guinea, including installation of a 150 tonnes per day gravity separation plant based on design parameters defined by SGS South Africa and Henan Xingyang Mining Machinery Manufactory, a branch of XKJ Solution Group of Zhengzhou, China.
The gravity plant equipment, and structural steel footings and supports have been delivered to the mine site and are awaiting final assembly and installation.
Stellar has extracted and stockpiled the first 15,000 tonnes of gold-mineralized material from an identified extraction trench and this material is ready for processing as an initial bulk sample once commissioning of the plant begins. Commissioning is planned for January 2018.
ABOUT STELLAR AFRICAGOLD INC.
Stellar AfricaGold Inc. is a Canadian gold exploration Company based in Montreal, Quebec, with operations concentrated mainly in West Africa and in Quebec.
The Company is currently developing the promising gold potential of the advanced exploration stage Balandougou project in Guinea, including a 15,000 tonne bulk sample program. (see News Release March 1, 2017) The Company also owns the Namarana project in neighbouring Mali. In Quebec, the Company owns 100% of the Opawica Project in the Chibougamau mining camp.
The technical content of this press release has been reviewed and approved by independent consultant Greg Isenor, P. Geo, a Qualified Person as defined in NI 43-101.
