Stellar Africagold Closes Sale of Balandougou GOLD Project FOR US$3,895,000 (C$5.13M)
STELLAR AFRICAGOLD CLOSES
SALE OF BALANDOUGOU GOLD PROJECT FOR US$3,895,000 (C$5.13M)
Vancouver, October 30, 201 9 – John Cumming , President and Chief Executive Officer of Stellar
AfricaGold Inc., (TSX-V: SPX) ("Stellar" or the "Company") is pleased to announce:
Sale of the Balandougou Gold Project Closed
Stellar and its minority partners have closed the sale of 100% of the Balandougou Gold Project for US$3.85M
(C$5.13M). See news releases August 22 and September 11, 2019.
The Balandougou Gold Project , comprised of a 7 km 2 Balandougou semi -industrial exploitation permit
together with all related plant and equipment, and two Guinea subsidiary companies holding contiguous
exploration permits pending totalling approximately 150 km 2. was sold to Rida Mining Ltd. of Khartoum,
Sudan.
The transaction price of US$3.85M (C$5.13M) paid to Stellar as intercorporate exploration and development
expense recovery. The sale proceeds will be paid in four installments ending January 15, 2021. US$1.85M
(C$2.42M) has been received. A finder’s fee will be paid to the African Bureau of Mining Consultants and its
founder pro rata as the sale proceeds are received by Stellar.
“Stellar’s management team, President and CEO John Cumming and Vice President Exploration and COO
Maurice Giroux deserve credit for securing this transaction for Stellar” commented Stellar director François
Lalonde. “They considered many avenues to unlock the value of Balandougou for the benefit of Stellar and
its shareholders, and they should be commended for this result.”
“I also wish to extend my thanks” said Presient John Cumming. “Firstly, to Stellar’s Vice President Maurice
Giroux who discovered the Solotomo gold region and has worked tirelessly since 2009 to add value to the
Balandougou Gold Project. He was also the face of Stellar for the first introductions and subsequent
negotiations with Rida Mining Ltd. and was present w ith them in Khartoum when the first offers for
Balandougou were presented. I also want to th ank the African Bureau of Mining Consultants which was
instrumental in the transaction origination, introducing Rida Mining Ltd. to Stellar , and guiding the parties
through the negotiating process. Additionally, throughout the process of due diligence and necessary deal
adjustment negotiations they provided critically important and wide-ranging transaction facilitation services
including assistance structuring and amending the transaction, inter -jurisdictional lega l coordination,
project due diligence technical consulting, and cross-cultural advice. With the parties coming from two
different countries on two continents having very different cultures and business norms and the project in
a third country , support and facilitation services were massively important and it is fair to say that the
transaction could not have been successfully completed without this assistance.”
The Path Forward for Stellar AfricaGold
As previously announced ( news release August 22, 2019 ) Stellar is continuing to actively review and evaluate
new exploration property acquisition opportunities in north and west Africa. Stellar has short-listed four projects
for detailed evaluation, and the African Bureau of Mining Consultants is providing local and technical support as
due diligence work is undertaken. Further announcements will be made as decisions are taken.
Results of Annual and Special General Meeting
The Annual and Special General Meeting of Shareholders (the "Meeting") of the Company was held on October
17, 201 9 in Vancouver, BC . At the Meeting, shareholders approved all resolutions put before them by
management including the election of all nominees for the board of directors, the appointment of the auditor ,
the approval of the Company's incentive stock option plan and the sale of the Balandougou Gold Project.
Total Voting Shares
A total of 18,783,334 shares representing 29.38% of the issued capital were voted at the Meeting. No shares or
proxies were disqualified.
Election of the Board of Directors
Management’s slate of directors was elected by acclamation with the following vote totals being recorded.
Directors Votes For Votes Withheld
John Cumming 18,783,344 (100.00%) 200 (<0.01%)
Maurice Giroux 18,783,344 (100.00%) 1,400 (<0.01%)
John Ryan 18,783,344 (100.00%) 1,400 (<0.01%)
François Lalonde 18,783,344 (100.00%) 1,400 (<0.01%)
Lauren McCrae 18,783,344 (100.00%) 1,400 (<0.01%)
Incumbent board members welcome newly elected Lauren McCrae to the board . Ms McCrae will serve as an
independent member of the board and on the subcommittees of the board.
Ms McCrae is a Vancouver-based, award-winning, public affairs and brand researcher. She is trilingual and holds
a Bachelor of Arts in International Studies from Glendon College, York University, Toronto, a Masters Degree in
International Security from the Paris Institute of Political Studies ( SciencesPo), Paris, and a Master of Science in
International Political Economy granted with distinction from the London School of Economics and Political
Science, London. During her career she has served as: Senior Consultant, Policy & Evaluation Unit of Ipsos MORI,
London; Senior Researcher for On e World Trust, London, where she investigated and repor ted on the
accountability of international organizations including the World Bank, World Health Organization and World
Trade Organization; Policy Analyst for The Serco Institute , a London -based think t ank producing research
endorsed by the British Cabinet Office; and as Researcher for the 2020 Public Services Trust, London, delivering
large research projects on public service reform s during which time she reported to high-profile, cross-party
Trustees i ncluding five members of the House of Lords. Ms McCrae has authored and co -authored several
published papers on public policy and research methodology.
Appointment of Auditors
The shareholders re-appointed Morgan & Company LLP, Chartered Accountants, as the Company's auditor and
authorized the directors to fix the auditors remuneration.
Incentive Stock Option Plan
The shareholders approved the Company's rolling incentive stock option plan.
Sale of the Balandougou Gold Project
The shareholders unanimously approved the sale of the Balandougou Gold Project, Guinea.
ABOUT STELLAR AFRICAGOLD INC.
Stellar AfricaGold Inc. is a Canadian gold exploration company with offices in Vancouver, BC and Montreal, QC.
For further information please contact:
John Cumming, President & CEO., or Maurice Giroux, VP Exploration, Stellar AfricaGold Inc.,
Email: [email protected] Email: [email protected]
Additional information is available on 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. Forward -looking information reflects the
Company’s current internal expectations or beliefs and is based on information cur rently 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. Forward looking information contained
in this news release includes, without limitation, statements relating to the completion of the Opawica Transaction and the e xploration and
development potential of the Balandougou II permit. Forward looking information are based on assumptions made by the Company. 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: the failure of Stellar to
obtain TSX-V approval of the Opawica Transaction, the failure of Mosaic to complete the Mosaic Concurrent Financing, that the business prospects and
opportunities of the Company will not proceed as anticipated; changes in the global prices for gold or certain other commodit ies (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 p rotection 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 Ven ture Exchange) accepts
responsibility for the adequacy or accuracy of this release.