Business
Stellar AfricaGold TSX-V Conditional Approval of Opawica Sale
(via TheNewswire) Vancouver / TheNewswire / August 9, 2018 - John Cumming , Pres...
About this update from Stellar Africagold, Inc.
[{"type":"text","content":"Stellar AfricaGold TSX-V Conditional Approval of Opawica Sale(via TheNewswire)\n\n \nVancouver / TheNewswire / August 9, 2018 - John Cumming, President and Chief Executive Officer of Stellar AfricaGold Inc., (TSX-V: SPX) (\"Stellar\" or the \"Company\") announces: \n\n\n \n\n\n\n \nCONDITIONAL APPROVAL OF AMENDED OPAWICA SALE\n\n\n \nFurther to the Company's June 28, 2018 news release, Stellar and Mosaic Minerals Inc. (\"Mosaic\") have amended the mineral property sale and purchase agreement for the 33 claim Opawica gold project (\"Opawica\"), Quebec. The amended agreement now provides for closing the transaction into escrow with final closing following shareholder approval at the next Annual General Meeting of Stellar shareholders scheduled for mid October, 2018. No other deal terms were altered.\n\n\n \nThe Opawica sale as amended (the \"Opawica Transaction\") has received TSX Venture Exchange conditional approval. The trans but remains subject to shareholder approval at the forthcoming AGM and final filings with the TSX-V.\n\n\n \nABOUT THE OPAWICA SALE\n\n\n \nStellar's determination to focus on gold exploration and development at its Balandougou Gold Project in Guinea also mandated that it divest of all non-core assets. To best monetize its last remaining non-core asset Stellar agreed to sell Opawica to Mosaic for $360,000 to be paid by the issuance of 7,200,000 shares of Mosaic issued at a deemed price of $0.05 per share, plus a 2% Net Smelter Return royalty (\"NSR\") one-half of which may be purchased by Mosaic for $1,000,000. The $0.05 share price was based upon the issue price of the Concurrent Mosaic Financing (as defined below). \n\n\n \nThe 7,200,000 shares of Mosiac to be issued to Stellar was based upon and represents a 100% recovery of Stellar's historical exploration expenditures of $360,000, while the 2% NSR provides a potential long-term upside benefit for Stellar shareholders should a discovery be made at Opawica in the future. Opawica is an early stage exploration property with no known discovery, no defined drill targets and no resource or reserve. As such it is of indeterminate or 'soft' value and not capable of formal valuation; therefore, no formal valuation of the property or fairness opinion of the Opawica Transaction was obtained.\n\n\n \nThe Opawica Transaction will be closed in two stages. The initia...