Stellar Africagold Announces Second and Final Closing of Oversubscribed Private Placement FOR a Total of $ 850,500
STELLAR AFRICAGOLD ANNOUNCES SECOND AND FINAL CLOSING OF
OVERSUBSCRIBED PRIVATE PLACEMENT FOR A TOTAL OF $ 850,500
Montreal, June 9, 2017 – John Cumming, President and Chief Executive Officer of Stellar AfricaGold Inc., (TSX-
V: SPX) ("Stellar" or the "Company") announces the closing of the last tranche of a non-brokered private
placement, for a total of 8,000,000 units, at a price of $ 0.05 per unit, for aggregate proceeds of $ 400,000 and
the first one of a total of 9,010,000 unit for aggregate proceeds of $ 450,500. Total proceed raised in the financing
is $ 850,500.
Each unit is comprised of one common share and one share purchase warrant entitling the holder to purchase
one additional common share at an exercise price of ten cents for a period of 12 months.
The net proceeds from the offering will be used to advance the Company’s bulk sampling program at Zone B3
Balandougou in Guinea and for general working capital. Registered Exempt Market and Broker Dealers in Canada
received cash payments of $ 15,140 and 302,800 broker warrants to purchase up to 302,800 common shares in
the capital stock of the Company, at a price of $0.10 per common share, within a delay of 12 months after the
closing.
The transactions constituted a related-party transaction within the meaning of TSX Venture Exchange Policy 5.9
and Multilateral Instrument 61-101 as certain insiders of the Company have subscribed for 3,900,000 units,
approximately 23% of the Offering at a cost of $195,000. The Company is relying on the exemptions from the
valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and
5.7(1)(a) of MI 61-101, as the Company is not listed on a specified market and the fair market value of the
participation in the offering by insiders does not exceed 25 per cent of the market capitalization of the
Company, as determined in accordance with MI 61-101.
ABOUT STELLAR AFRICAGOLD INC.
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, Montréal (Québec) H2Y-2P5. Tel.: 514-866-6299 Email: [email protected] or access the
Company’s website at www.stellarafricagold.com.
On Behalf of the Board
John Cumming, LLM,
President & CEO
Forward Looking Statement
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 stat ements 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, aluminu m and
electricity); changes in U.S. dollar and other currency exchange rates, interest rates or gold lease rates; risks arising fro m
holding derivative instruments; the level of liquidity and capital resources; access to capital markets, financing and inte rest
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 ove r 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, metallu rgical 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 t he TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.