Business
Stellar AfricaGold Secures Loan Facility
(via TheNewswire) Vancouver / TheNewswire / October 27, 2017 - John Cumming , Pr...
About this update from Stellar Africagold, Inc.
[{"type":"text","content":"Stellar AfricaGold Secures Loan Facility(via TheNewswire)\n\n \nVancouver / TheNewswire / October 27, 2017 - John Cumming, President and Chief Executive Officer of Stellar AfricaGold Inc., (TSX-V: SPX) (\"Stellar\" or the \"Company\") announces: \n\n \n \nLOAN FACILITY\n\n \n \nStellar's Guinea subsidiary, MGWA Goldenfrank SARL, has reached an agreement on the commercial terms for a US$400,000 loan facility. \n\n \n \nThe 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.\n\n \n \nThe 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).\n\n \n \nStellar 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.\n\n \n \nThe loan facility and warrant are subject to the approval of the TSX Venture Exchange.\n\n \n \nBALANDOUGOU GOLD PROJECT BULK SAMPLE UPDATE\n\n \n \nStellar 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. \n\n \n \nThe gravity plant equipment, and structural steel footings and supports have been delivered to the mine site and are awaiting final assembly and installation.\n\n \n \nStellar 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.\n\n \n \nABOUT STELLAR AFRICAGOLD INC.\n\n \n \nStellar AfricaGold Inc. is a Canadian gold exploration Company based in Montreal, Quebec, with operations concentrated mainl...