The acquisition consists of Prikro and Zenoula gold projects, which cover a total area of 770km2
Stellar AfricaGold has signed an agreement with Altus Strategies to acquire two gold permits in the Republic of Côte d’Ivoire.
The acquisition includes Prikro and Zenoula gold projects, which cover a total area of 770km2.
Under the terms of the nonbinding agreement, Stellar has been given a thirty-day exclusivity period to carry out a technical due diligence review and site inspection.
Aucrest SARL holds a 100% stake the Prikro gold permit and the pending Zenoula gold permit application.
To acquire the projects, Stellar will purchase 100% stake in Aeos Resources, a Seychelles company, which owns Aucrest SARL, a Cote D’Ivoire company.
The payment for the acquisition includes 2.5 million Stellar shares, with each unit comprising one common share and one share purchase warrant exercisable for two years at CAD0.07 ($0.05) per share.
Altus chief executive Steven Poulton said: “We are pleased to announce the signing of this non-binding Term Sheet with Stellar for the sale of our prospective Prikro and Zenoula gold projects in Ivory Coast.
“We believe that the proposed Transaction not only validates the value we have identified in the Projects but that we have partnered with the right company to progress these Projects through to the next key phases.
“Our focus remains firmly on delivering a high quality, diversified and precious metal focused portfolio of assets to our shareholders. This proposed Transaction further underscores our dynamic and highly effective royalty generating business model and we look forward to updating shareholders on this opportunity in due course.”
Details of Prikro and Zenoula gold projects
Located nearly 240km northeast of the capital of Abidjan, the Prikro permit consist of a single 369.5km2 exploration permit in the Prikro and Koun-Fao Departments in eastern Côte d’Ivoire.
The permit is said to be accessible by asphalt roads from Abidjan. It contains historically reported gold occurrences, prospective geology, and nearby artisanal workings.
Located approximately 300km north of Abidjan, the Zenoula permit includes a single 400km2 permit application that is yet to receive a grant in the Marahoue Department in central Côte d’Ivoire.
According to Altus, the project is centred within a NNE trending Birimian age granite greenstone belt.
Altus will hold a 2.5% net smelter return (NSR) royalty on each of the permits.