Stellar has acquired a 100% interest in Aeos Resources Ltd (“Aeos”), a formerly wholly owned Seychelles incorporated subsidiary of the company
Altus Strategies Plc (AIM: ALS & TSX-V: ALTS), announces that it has signed a definitive Purchase & Sales (“P&S”) agreement and Net Smelter Return (“NSR”) royalty agreements (together the “Transaction”) with TSX-V listed Stellar Africa Gold Inc. (“Stellar”) in respect of Altus’ Prikro and Zenoula gold projects (“Projects”) located in the Republic of Côte d’Ivoire (“Ivory Coast”).
Steven Poulton, Chief Executive of Altus, commented: “We are pleased to conclude this royalty and equity transaction with Stellar on our two prospective gold projects in Ivory Coast. Altus is focused on realising value from a high quality, diversified and precious metal focused portfolio of royalty assets. This transaction further underscores our royalty generation strategy and we look forward to Stellar’s exploration progress on the Projects”.
Stellar has acquired a 100% interest in Aeos Resources Ltd (“Aeos”), a formerly wholly owned Seychelles incorporated subsidiary of the Company. Through its Ivorian subsidiary Aucrest SARL, Aeos holds a 100% interest in the Projects. The Agreements have the following headline terms:
Upon signing of the Agreements by the Parties, Stellar will:Within 14 days and subject to any regulatory or shareholder approvals as may be required, issue 2,500,000 Units of Stellar to Altus. Each Unit will consist of one Stellar share and one 24 month share purchase warrant, with each warrant granting the holder the right but not the obligation to purchase one Stellar share at a price of C$0.07.
Part 2: Milestone payments
Upon the definition of a resource, confirmed by an independent NI 43-101 report, which exceeds 500,000 ounces of gold (including at least 250,000 ounces within the Indicated category), Stellar will (in respect of the first 500,000 ounces on each Project):Within 14 days and subject to any regulatory or shareholder approvals as may be required, issue Stellar shares valued (at the time of issuance) at US$250,000 to Altus.
Upon the completion of a definitive feasibility study on either Project, Stellar will:Within 14 days and subject to any regulatory or shareholder approvals as may be required, issue Stellar shares valued (at the time of issuance) at US$250,000 to Altus.
Altus will retain a 2.5% NSR royalty on each of the Projects.
Stellar will have the right to repurchase up to 1.0% of each NSR for US$0.5 million for each 0.5% repurchased.
The Prikro project comprises a single 369.5km2 exploration licence in the Prikro and Koun-Fao Departments in eastern Ivory Coast, approximately 240km northeast of the capital of Abidjan. The project is located 40km north-west of the town of Agnibilekrou and 25km west of the town of Koun-Fao, both of which can be accessed by asphalt roads from Abidjan. The licence was selected due to the presence of historically reported gold occurrences, prospective geology, and the existence of artisanal workings in the surrounding areas including along strike of a major NE-SW trending shear zone which is interpreted to traverse the licence area. Birimian-age greenstone rocks reportedly crop out extensively across the Prikro licence and represent Paleoproterozoic meta-sedimentary units, with associated granite to diorite intrusives, which are the dominant host setting for gold deposits across West Africa.
The Zenoula project comprises a single 400km2 licence application which is currently pending grant in the Marahoue Department in central Ivory Coast, approximately 300km north of Abidjan. The project is located 100km north-west of the city of Yamoussoukro which can be accessed by asphalt roads from Abidjan. Zenoula is centred within a NNE trending Birimian age granite greenstone belt, 65km along strike from the Abujar project of ASX listed Tietto Minerals Limited. Mineralization hosted on this property is not necessarily indicative of the Zenoula project. Zenoula targets a 22 km long oblique ENE trending structure, interpreted by historic air magnetic data. Geologically, the project reportedly comprises metasediments, metabasalts and syntectonic granitoid intrusives.
Source: Company Press Release