Stellar Africagold Closes Acquisition of 770 KM2 GOLD Permits IN Côte D’Ivoire
STELLAR AFRICAGOLD CLOSES
ACQUISITION OF 770 KM2 GOLD PERMITS IN CÔTE D’IVOIRE
Vancouver, November 2 7, 2020 John Cumming , President and CEO of Stellar AfricaGold Inc., (TSX -V: SPX)
("Stellar" or the "Company") announces:
Closing of Priko and Zenoula Permits Acquisition
Stellar and Altus Strategies PLC have closed the acquisition agreement for two gold permits, the fully issued Priko
permit and the pending Zenoula permit, totaling approximately 770 km2 in Côte d’Ivoire. Stellar has acquired a
100% interest in Aeos Resources Ltd., a Seychelles company, which owns a 100% interest in Aucrest SARL, a Cote
D’Ivoire company. Aucrest SARL owns a 100% interest the Prikro gold permit and the pending Zenoula gold permit
application.
Stellar has issued to Altus Strategies Plc 2,500,000 units of Stellar, each unit consisting of one common share and
one share purchase warrant ex ercisable for two years at C$0.07 per share. The shares are subject to an
investment hold period expiring March 26, 2021.
Contingent upon reaching exploration milestones on each permit Stellar will also make two further payments
per permit with shares equal to US$250,000 in value: a) upon completion of a NI43-101 resource estimate of not
less than 500,000 ounces of gold with not less than 250,000 ounces in the Inferred category, and b) upon
completion of a definitive feasibility study.
Altus will retain a 2.5% Net Smelter Return (“NSR”) royalty on each permit. Stellar may repurchase up to 1.0% of
each NSR for US$500,000 for each 0.5%.
About the Prikro Project
The Prikro permit comprises a single 369.5 km 2 exploration permit in the Prikro and Koun -Fao Departments in
eastern Côte d’Ivoire, approximately 240km northeast of the capital of Abidjan. The permit is located 40km
north-west of the town of Agnibilekrou and 25km west of the town of Koun-Fao, both of which can be accessed
by asphalt roads from Abidjan. The permit has historically reported gold occurrences, prospective geology, and
nearby artisanal workings including along strike of a major NE -SW trending shear zone which is interpreted to
traverse the permit area. Birimian-age greenstone rocks reportedly crop out extensively across the Prikro permit
and represent Paleoproterozoic meta-sedimentary units, with associated granite to diorite intrusives, which are
the dominant host setting for gold deposits across West Africa.
About the Zenoula Project
The Zenoula permit comprises a single 400km 2 permit application which is currently pending grant in the
Marahoue Department in central Côte d’Ivoire, approximately 300km north of Abidjan. The permit is located
100km north of the town of Yamoussoukro which can be accessed by asphalt roads from Abidjan. Zenoula is
centred within a NNE trending Birimian age granite greenstone belt, 65km along strike from the Abujar project
of ASX listed Tietto Minerals Limited. Zenoula targets a 22 km long oblique ENE trending structure, interpreted
by historic air magnetic data. Geologically, the project reportedly comprises metasediments, metabasalts and
syntectonic granitoid intrusives.
Although Covid-19 international travel restrictions have impeded foreign acquisitions and exploration activity for
many international companies , Stellar is fortunate to have access to qualified and experienced African
professionals to manage the legal and technical requirements of this acquisition. The acquisition and technical
teams in Africa will be directly managed by Stellar’s Moroccan director Yassine Belkabir, managing director of
African Bureau of Mining Consultants and a Qualified Person as defined in NI 43-101.
ABOUT STELLAR AFRICAGOLD INC.
Stellar AfricaGold Inc. is a Canadian gold company with head office in Vancouver, BC and technical office in
Montreal, QC. Stellar President John Cumming can be contacted at 604 -618-4262 or by email at
The technical content of this press release has been reviewed and approved by Yassine Belkabir, MScDIC, CEng,
MIMMM, a Stellar director and a Qualified Person as defined in NI 43-101.
On Behalf of the Board
John Cumming,
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 ta x 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 enviro nment; 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 min ing business. Risks and unknowns
inherent in all projects include the inaccuracy of estimated reserves and resources, metallurgical recoveries, capital and op erating 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) a ccepts
responsibility for the adequacy or accuracy of this release.