JOHANNESBURG (miningweekly.com) – Aim-listed Stellar Diamonds has received the required tax clearance certificates, after completing all the necessary Guinean governmental tax payments, for the sale of its Guinea companies and assets to BDG Capital.
BDG is completing its review of these documents after which it is expected that the transaction will be concluded and the balance of the funds transferred to Stellar, which plans to use the proceeds towards ongoing project costs in Sierra Leone and general working capital.
In June, Stellar entered into a conditional binding term sheet with BDG Capital for the proposed sale of its assets in Guinea, with $250 000 in cash paid to Stellar as an exclusivity fee, which covers two months for due diligence and the completion of documentation.
BDG is expected to pay another $250 000 in exclusivity fees to Stellar in due course.
Meanwhile, Stellar is in discussion with its convertible loan note (CLN) holders regarding extensions to the outstanding loan notes and is confident these will be secured in the near future.
Stellar further highlighted discussions with Octea Mining over an extension to the tribute mining agreement longstop date, with expectations of securing an extension in the near future.
The company also continued discussions with certain funding groups for the capital requirements for the Tongo-Tonguma mine development, in Sierra Leone.