JOHANNESBURG (miningweekly.com) – West Africa-focused Stellar Diamonds and BDG Capital have agreed on a final purchase price of $1.25-million for Stellar’s Guinea assets.
This follows the completion of a due diligence by BDG.
Stellar has already received $500 000 of the overall purchase price, with the proceeds used for working capital.
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 about $123 000.
“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 $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,” CEO Karl Smithson said.