Tickers: XTSX:SPX
Tags: Mining
Vancouver / TheNewswire / October 27, 2017 - John Cumming, President and Chief Executive Officer of Stellar AfricaGold Inc., (TSX-V: SPX) ("Stellar" or the "Company") announces:
LOAN FACILITY
Stellar's Guinea subsidiary, MGWA Goldenfrank SARL, has reached an agreement on the commercial terms for a US$400,000 loan facility.
The 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.
The 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).
Stellar 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.
The loan facility and warrant are subject to the approval of the TSX Venture Exchange.
BALANDOUGOU GOLD PROJECT BULK SAMPLE UPDATE
Stellar 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.
The gravity plant equipment, and structural steel footings and supports have been delivered to the mine site and are awaiting final assembly and installation.
Stellar 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.
Stellar AfricaGold Inc. is a Canadian gold exploration Company based in Montreal, Quebec, with operations concentrated mainly in West Africa and in Quebec.
The Company is currently developing the promising gold potential of the advanced exploration stage Balandougou project in Guinea, including a 15,000 tonne bulk sample program. (see News Release March 1, 2017) The Company also owns the Namarana project in neighbouring Mali. In Quebec, the Company owns 100% of the Opawica Project in the Chibougamau mining camp.
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 Maurice Giroux, VP Exploration, Stellar AfricaGold Inc., 410 St-Nicolas, Suite 236, Montreal (Quebec) H2Y-2P5. Tel.: 514-866-6299 Email: mgiroux.stellar@gmail.com or access 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 concerning the Arrangement. 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. Assumptions upon which such forward-looking information is based includes, among others, that the conditions to closing of the Arrangement will be satisfied and that the Arrangement will be completed on the terms set out in the definitive agreement. 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: that the remaining conditions to the Arrangement will not be satisfied; that the business prospects and opportunities of the Company will not proceed as anticipated; changes in the global prices for gold 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.
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.
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