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Stellar to Share Ownership of African Projects
Jul 28, 2016 10:53 AM
By Rapaport News
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RAPAPORT...  Stellar
Diamonds is reducing its stake in diamond projects in Guinea and Liberia in
order to focus on developing its Tongo mine in Sierra Leone.
The
company signed a provisional agreement to form a joint venture with Dubai-based
Citigate Commodities Trading whereby Citigate will gain 75 percent of the
Baoulé kimberlite project in Guinea over three “earn-in” phases. The traders will
have rights to off-take supply from the project during the earn-in process. Citigate
will also undergo a staged earn-in of up to 85 percent of two of Stellar’s new
exploration licenses in western Liberia with similar off-take rights to supply.
Stellar will
receive a proportion of revenues from on-going trial mining at Baoulé at zero
cost and have an up-front payment for managing the projects during the first
phase of work, explained Karl Smithson, Stellar’s chief executive officer (pictured).
“These
joint ventures allow the key management of Stellar to focus efforts on the
development of our high-grade Tongo project in Sierra Leone as we progress
towards the mining phase, whilst retaining equity positions in both the Baoulé
and Liberia projects,” he said.
The deal
is subject to due diligence by Citigate before a final agreement is signed.
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Tags:
Baoulé, Citigate, Citigate Commodities Trading, Dubai, Guinea, Karl Smithson, Liberia, Rapaport News, Sierra Leone, stellar, Stellar Diamonds
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