MONTREAL, QUEBEC--(Marketwired - Nov. 17, 2014) - Maurice Giroux, President and Chief Executive Officer of Stellar AfricaGold Inc. (TSX VENTURE:SPX) ("Stellar" or the "Company") is pleased to announce the strategic acquisition of 31 mining cells from the Company 6645488 Canada Inc. / Terrax Management Inc. in the "Territoire d'Eeyou Istchee, Baie James, Quebec.
The property is located 350 km north of the town of Chibougamau Quebec and 30 km NE of the Eastmain Gold Mine. The Eastmain Mine property hosts a high-grade gold-copper-silver deposit originally discovered by Placer Dome. The 31 cells block acquired is adjacent and to the NW of SOQUEM Lac Harbour Property and also to the NW of Virginia Gold property.
This area is part of Quebec "Plan Nord" and is now accessible from Chibougamau by the new 243-kilometre-long all-season road to Stornoway's Renard diamond Mine. Interest in the potential of this area was recently revived by Visible Gold Mine Inc. discovery at different location along the road side of numerous mineralized boulders of high grade gold, silver, copper and zinc. That discovery reinforce the high probability of the presence of important Chibougamau type polymetallic deposits in this area.
C.E.O Maurice Giroux states; "At Stellar, we are confident that this area will soon become an active mining camp. The recent opening of that territory by the Quebec Plan Nord initiative will attract more Companies interested in this perspective area. SOQUEM' Lac Harbour gold showing as well as the Eastmain Gold Mine Project nearby Stellar' acquisition are both located within the volcanic belt that already demonstrate an excellent potential for some new discoveries. For those reasons, Stellar is currently examining other interesting alternatives to increase its stakes in that area of interest"
According to the Agreement, Stellar is buying from the vendor an undivided 70% of the right and interest in 31 mining cell "claims" in counterpart of 1,0 million shares in the capital of the Company. Also, Stellar retains the right to purchase the remaining 30% of the right and interest in the claims, within a 6 month period following the acceptance of the Agreement by paying an additional 1,0 million shares of the capital of the Company.
After the closing of the agreement, each party shall contribute its proportionate share of all expenditures in respect of the property equal to its ownership interest therein for the exception of the first $100,000 which will be spent by Stellar only.
The transaction is subject to the approval of the TSX-V Exchange and the common shares issued will be subject to a hold period of four months and one day.
ABOUT STELLAR AFRICAGOLD INC.
Stellar AfricaGold Inc. is a Canadian mine exploration company based in Montreal, Quebec, with operations concentrated mainly in West Africa and in the Chibougamau Area in Quebec.
FORWARD LOOKING STATEMENTS
This document contains forward-looking statements concerning future development contingent upon uncertain factors including financing revenues, progress and results of activities and operations, and environmental factors that are in some cases considered forward-looking statements. These statements are based on numerous assumptions including commodity prices, exploration results, resource availability, and other assumptions that management believes are reasonable based on currently available information, however management's assumptions and the Company's future performance are subject to a wide range of business risks and there is no assurance that these goals and projections can or will be met.
The technical content of this press release have been reviewed and approved by Mr. Maurice Giroux, a Qualified Person as defined in NI 43-101.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Maurice Giroux, President and CEO
Stellar AfricaGold Inc.