Stellar Diamonds plc, the diamond development company focused on West Africa, has signed conditional share purchase agreements with Gold Knight Limited, a wholly owned subsidiary company of BDG Capital Limited (BDG) in relation to the proposed sale (the Transaction) of Stellar’s assets in the Republic of Guinea (Guinea), as previously announced on 5 June and 14 August 2017.
Following the due diligence process undertaken by BDG, a final purchase price of US$1250 000 has been agreed for the transaction, of which Stellar has received US$500 000 to date. The proceeds already received have been applied to the company’s working capital since June. Completion of the Transaction and receipt of the balance of funds is conditional upon payment by Stellar of certain government taxes in Guinea, amounting to approximately US$123 000 which are due by Stellar’s locally incorporated subsidiary in Guinea which is being sold. Completion is expected to occur later this month. A further announcement will be made in due course regarding completion.
Chief Executive Karl Smithson commented:
“We are delighted to be able to bring the disposal of our Guinea assets to a close. Stellar’s carrying cost in Guinea is approximately US$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 every success in taking the Guinea projects forward.”
Read the article online at: https://www.globalminingreview.com/finance-business/16102017/stellar-diamonds-to-dispose-of-guinea-assets/