Business
Stellar AfricaGold Sells Balandougou Gold Project, Guinea for $5,120,000 and Examines New Exploration Opportunities in Africa
(via TheNewswire) Vancouver, BC - TheNewswire - August 22, 2019 - John Cumming, P...
About this update from Stellar Africagold, Inc.
[{"type":"text","content":"Stellar AfricaGold Sells Balandougou Gold Project, Guinea for $5,120,000 and Examines New Exploration Opportunities in Africa(via TheNewswire)\n \n \nVancouver, 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: \n\n \n \nSale of Balandougou Gold Project, Guinea\n\n \n \nStellar 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.\n\n \n \nThe 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. \n\n \n \nProject 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. \n\n \n \nAfrican 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.\n\n \n \n\"The skill and dedication of Stellar's exploration team during the past several years has successfully demonstrated t...