Stellar Management Commenting on Cease Trade Order
Montreal, February 2, 2016 - Maurice Giroux, President and Chief Executive Officer of Stellar AfricaGold Inc. ("Stellar" or the "Company") wishes to comment on Company’s cease trade order and on the strategy to keep protecting and developing assets and rebuild Company’s market value in this persisting downturn.
As previously announced and despite all efforts, the management has not been capable of closing on time a transaction involving the advanced Balandougou Project in Guinea. I can assure shareholders that many discussions on possible JV and/or selloff of Balandougou Project are progressing with 4 different parties and we hope to come to an agreement that will be at the benefit of the shareholders.
The current market situation, where the TSX Venture exchange (‘’TSXV’’) index fell from 2,400 points in 2011 straight down to 500 points today, a drop of 80%, reflect in all proportion the loss of Stellar’s market value down to an astonishing $ 240,000. This situation is frustrating considering the money and energy invested by the Company to develop the African Project and create value to the shareholders. More than US$ 6.0 million have been invested so far to advance the Balandougou Project up to the Preliminary Economic Assessment and Pre-Feasibility Study.
At current conditions, the management will, for an undefined time keep operating the Company as a non listed public issuer until the Company can meet with the filing requirements of the Autorité des Marchés Financiers and of the TSXV.
ABOUT STELLAR AFRICAGOLD INC.
Stellar AfricaGold Inc. is a Canadian Exploration Company based in Montreal, Quebec, with operations concentrated mainly in West Africa. Stellar AfricaGold Inc.
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.
The Company also owned 100% of the Opawica Project in the prolific Monster Lake and Nelligan Project in the Chapais-Chibougamau mining camp in Quebec.
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