STELLAR AFRICAGOLD INC CLOSES $395 000 PRIVATE PLACEMENT Mr. Maurice Giroux report:
Montreal, August 16, 2016 - Maurice Giroux, President and Chief Executive Officer of Stellar AfricaGold Inc. (TSX-V: SPX) ("Stellar" or the "Company) announces the closing of a non-brokered private placement of a total amount of $395 000 through the sale 395 units. Each unit is composed of 17,000 flow through shares and 3,000 non-flow through common shares at the price of $0.05 and 20,000 share purchase warrants. Each common share purchase warrant can be exercised at a price of 10 cents for a period of 2 years.
In connection with the private placement, Stellar paid a commission fees to Sherbrooke Street Capital in the amount of $13,000 and 260,000 broker warrants and to Marchés Mondiaux CIBC in the amount of $ 9,500 and 190,000 broker warrants. Each broker warrant entitles the holder to purchase one common share, at a price of 10 cents, for a period of 2 years following the closing date.
No insiders have participated in this private placement.
The gross proceeds from this placement will be used to consolidate company’s projects in Quebec, namely the Opawica and Eastmain Belt River Project and working capital.
All securities issued pursuant to the private placement are subject to a four-month-and-one-day hold period. The private placement is subject to the receipt of all necessary regulatory approvals, including the final approval of the TSX Venture Exchange.
ABOUT STELLAR AFRICAGOLD INC.
Stellar AfricaGold Inc. is a Canadian mine 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 Balandougou project in Guinea, which is at an advanced exploration stage, as well as the Namarana project in Mali. The exploration licences held by Stellar and its partners are located entirely on the West African Birimiam Gold Belt.
In Quebec, the Company owns 100% of the Opawica, Eastmain Belt North and South and Terrax Option, all in the Chibougamau area.
FOR FURTHER INFORMATION PLEASE CONTACT:
Maurice Giroux, President and CEO
Stellar AfricaGold Inc.
410 St-Nicolas, Suite 236
Montréal (Québec) H2Y-2P5 Tel.: 514-866-6299 Fax: 514-866-8096
www.stellarafricagold.ca