Stellar AfricaGold Sells Balandougou Gold Project, Guinea for $5,120,000 and Examines New Exploration Opportunities in Africa
TSX VENTURE: SPX
Vancouver, BC - TheNewswire - August 22, 2019 - John Cumming, President and Chief Executive Officer of Stellar AfricaGold Inc., (TSXV:SPX) ("Stellar" or the "Company") is pleased to announce:
Sale of Balandougou Gold Project, Guinea
Stellar and its minority partners have reached a definitive agreement dated August 22, 2019 with Rida Mining Ltd. of Khartoum, Sudan, an arm's length party, for the sale of 100% of the Balandougou Gold Project including the 7 km2 Balandougou semi-industrial exploitation permit together with all related plant and equipment, and two Guinea subsidiary companies holding adjacent exploration permits pending totalling approximately 150 km2. Stellar and the minority partners own 80% and 20% respectively of the Balandougou Gold Project.
The transaction price is US$3.85M (C$5.13M) paid to Stellar as intercorporate exploration and development expense recovery. The sale proceeds will be paid in installments, US$1.8M (C$2.46M) on closing with the balance in three installments ending January 15, 2021.
Project due diligence is complete; however, the sale remains subject to several closing conditions including governmental approvals in Guinea, Stellar shareholder approval at the Annual General Meeting scheduled for October 17, 2019 and TSX Venture Exchange approval in the normal course.
African Bureau of Mining Consultants and its founder ("ABM") of Casablanca, Morocco were instrumental in the transaction origination and are providing ongoing essential transaction facilitation services including structuring the transaction, inter-jurisdictional legal coordination, project technical consulting, and cross-cultural advice. In respect of the transaction origination ABM will receive a finder's fee to be paid from the proceeds of the transaction. ABM's support and facilitation services are ongoing and will continue until all non-domestic transactional conditions are satisfied. ABM will be paid consultancy fees for those support and facilitation services which are in addition to the finder's fee.
"The skill and dedication of Stellar's exploration team during the past several years has successfully demonstrated the excellent gold potential of the Balandougou Gold Project" said Stellar vice President and COO Maurice Giroux. "The discovery of a cluster of gold deposits in the Solotomo area provide the Balandougou Gold Project a solid foundation for the current transaction with Rida Mining. Rida Mining possesses the expertise and financial capacity to take the Balandougou Gold Project forward to commercial production."
New Projects for Stellar AfricaGold
"The sale of Balandougou marks the end of one journey and the beginning of another. It is time for Stellar to forge a new direction forward" said Stellar President and CEO John Cumming. "Management is refocusing Stellar on mineral resource exploration and is actively evaluating several potential acquisition opportunities. The closing of the Balandougou transaction with Rida Mining will strengthen Stellar financially enabling management to begin examining and acquiring promising exploration opportunities in North and West Africa. Future acquisitions will be announced as decisions are taken."
Stellar's management is also considering expanding its board of directors by adding new members with expertise in UK and European equity financing, and African mineral exploration. Advanced discussions with qualified candidates are ongoing. Announcements will be made as decisions are taken.
ABOUT STELLAR AFRICAGOLD INC.
Stellar AfricaGold Inc. is a Canadian exploration company with offices in Vancouver, BC and Montreal, QC.
Stellar is focussing in the acquisition, exploration and promotion of new mineral exploration projects in north and west African jurisdictions to create wealth for shareholders.
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.
For further information please contact:
John Cumming, President & CEO, Stellar AfricaGold Inc., or Maurice Giroux, VP Exploration, Stellar AfricaGold Inc.,
4908 Pine Crescent, Vancouver, BC, V6M 3P6, 1035 West Laurier Street, Suite 201, Montreal, QC H2V 2L1.
Additional information is available on the Company's website at www.stellarafricagold.com.
On Behalf of the Board
John Cumming, LLM
President & CEO
This release contains certain "forward-looking information" under applicable Canadian securities laws. Forward-looking information reflects the Company's current internal expectations or beliefs and is based on information currently available to the Company. In some cases forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "projects", "potential", "scheduled", "forecast", "budget" or the negative of those terms or other comparable terminology. Forward looking information contained in this news release includes, without limitation, statements relating to: the completion of the Opawica Sale, completion of the proposed Arrangement, receipt of required shareholder, court, stock exchange and regulatory approvals for the Arrangement, the potential listing of Mosaic on the CSE and the exploration and development potential of the Balandougou II permit. Forward looking information are based on assumptions made by the Company. Many of these assumptions are based on factors and events that are not within the control of the Company, and there is no assurance they will prove to be correct or accurate. Risk factors that could cause actual results to differ materially from those predicted herein include, without limitation: the failure of Stellar to obtain required shareholder, court, stock exchange and regulatory approvals for the Arrangement, the failure of Mosaic to meet listing requirements on the CSE and the risks involved in the exploration, development and mining business. Risks and unknowns inherent in all projects include the inaccuracy of estimated reserves and resources, metallurgical recoveries, capital and operating costs of such projects, and the future prices for the relevant minerals. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times. Except as required by law, Stellar does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.