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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.
Tags: Baoulé, Citigate, Citigate Commodities Trading, Dubai, Guinea, Karl Smithson, Liberia, Rapaport News, Sierra Leone, stellar, Stellar Diamonds
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