Following due diligence process undertaken by BDG Capital a final purchase price of US$1 250 000 has been agreed for the transaction, of which Stellar Diamonds has received US$500 000 to date.
The proceeds already received have been applied to Stellar Diamonds’ working capital since June 2017.
Completion of the transaction and receipt of the balance of funds is conditional upon payment by Stellar Diamonds of certain government taxes in Guinea, amounting to approximately $123 000 which are due by Stellar Diamonds’ locally incorporated subsidiary in Guinea which is being sold.
“We are delighted to be able to bring the disposal of our Guinea assets to a close,” states CEO, Karl Smithson.
“Our carrying cost in Guinea is approximately $70,000 per month and we look forward to focusing our resources exclusively on progressing the high-grade and high value 4.5 million carat Tongo-Tonguma kimberlite mine development project in Sierra Leone.
“We wish BDG Capital every success in taking the Guinea projects forward,” he concludes.
Stellar Diamonds has paid $150 240 to the Sierra Leone Environmental Agency for the Tongo environmental licence.
The Tongo mining licence has been approved by the Minerals Advisory Board which was subject to the issuing of the environmental licence.
Once the environmental licence has been issued the National Minerals Agency will draw up the Tongo mining licence for consideration and signature by the Minister of Mines and Minerals Resources.
Furthermore, Stellar Diamonds has agreed with Octea Mining to extend the long-stop date for the satisfaction of certain of the conditions precedent of the binding Tribute Mining and Revenue Agreements in relation to the Tongo-Tonguma mine development project in Sierra Leone.
Feature image credit: Wikimedia