MONTREAL, QUEBEC--(Marketwired - Jan. 25, 2017) - John Cumming, President and CEO of Stellar AfricaGold Inc. (TSX VENTURE:SPX) ("Stellar" or the "Company") is pleased to announce that Stellar to buy the remaining 49% interest in the advanced Balandougou Gold Project in Guinea.
Effective January 23, 2017, UltraGold Holding LLC ("UltraGold) will convey to GoldenFrank Resources Inc. ("Goldenfrank"), a 100% owned subsidiary of Stellar, all of UltraGold's 49% right, title and interest in and to the Balandougou Gold Project properties. GoldenFrank will assume all liabilities associated with the properties.
The Parties also agreed to terminate the Balandougou Joint Venture Agreement dated February 2009, and in consideration of the termination of the joint venture Stellar will issue 750,000 shares of Stellar to UltraGold. UltraGold will retain a 1.5% net smelter return royalty capped at US$3.0 million at which time the royalty terminates.
"The consolidation of the ownership of the Balandougou Gold Project is a very important first step for Stellar" commented CEO John Cumming. "While in the right circumstances joint ventures can serve an important purpose, I think it is preferable for a junior resource company, whenever possible, to retain sole ownership of a project and control both the course of exploration and the budgets. Although I take pride in making this announcement, my involvement was consultative and advisory only. The successful negotiations were conducted by Stellar's past president and now VP Exploration, Maurice Giroux, so the credit for this achievement is his."
About Stellar AfricaGold Inc.
Stellar AfricaGold Inc. is a Canadian-based mineral exploration company headquartered in Montreal, Quebec, with gold projects in West Africa and Quebec.
The Company is pursuing the promising gold potential of its Balandougou Project in Guinea, with particular focus on the B3 oxide zone which is at an advanced exploration stage, and its early stage Namarana project in southern Mali.
The Company also owns 100% of the Opawica, Eastmain Belt North and South and Terrax Option, all in the Chibougamau and James Bay area of Quebec, Canada.
For further details about the Company's exploration activities visit Stellar's website at www.stellarafricagold.com.
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On Behalf of the Board
John Cumming, President & CEO
Forward Looking Statements
This news release contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding expected, estimated or planned gold and niobium production, cash costs, margin expansion, capital expenditures and exploration expenditures and statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "may", "will", "should", "continue", "expect", "anticipate", "outlook", "guidance", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation: changes in the global prices for gold, niobium, copper, silver or certain other commodities (such as diesel, aluminum and electricity); changes in U.S. dollar and other currency exchange rates, interest rates or gold lease rates; risks arising from holding derivative instruments; the level of liquidity and capital resources; access to capital markets, financing and interest rates; mining tax regimes; ability to successfully integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; laws and regulations governing the protection of the environment; employee relations; availability and increasing costs associated with mining inputs and labour; the speculative nature of exploration and development; contests over title to properties, particularly title to undeveloped properties; 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.
Development projects have no operating history upon which to base estimates of future cash flows. The capital expenditures and time required to develop new mines or other projects are considerable, and changes in costs or construction schedules can affect project economics. Actual costs and economic returns may differ materially from estimates and the Company could fail to obtain the governmental approvals necessary for the operation of a project; in either case, the project may not proceed, either on its original timing or at all.
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.
Stellar AfricaGold Inc.
Maurice Giroux, Chief Operating Officer