Stellar Diamonds states this exclusivity period may be further extended, if required, in order to complete the sale process.
Due diligence is largely complete save for completion of the audit of one of Stellar Diamond’s Guinean subsidiary companies and tax filings being completed for all three Guinea subsidiary companies being disposed of.
Coincident with the extension, a further US$250 000 is expected to be received by Stellar Diamonds shortly from BDG Capital taking the total exclusivity fee for the sale to $500 000.
“The proposed disposal of our Guinea assets allows management to focus on the Tongo – Tonguma mine development in Sierra Leone. It also allows for BDG to take the projects forward which is in the interests of Guinea and local stakeholders,” explains Stellar Diamonds CEO, Karl Smithson
“We look forward to unlocking the significant value that we believe is inherent in the Tongo – Tonguma development as we advance the company towards sustained commercial production.”
The terms sheet with BDG Capital, which is binding subject to BDG completing its due diligence satisfactorily, allows for a two month due diligence period during which time it is anticipated (although there can be no guarantee) the necessary share purchase agreements transferring Stellar Diamonds’ shares in its Guinea projects to BDG Capital will be completed.
Feature image credit: Stellar Diamonds