Vancouver, December 20, 2018 – John Cumming, President and Chief Executive Officer of Stellar AfricaGold Inc., (TSX-V: SPX) (“Stellar” or the “Company”) is pleased to report the closing of the Opawica sale and the results of the Company’s Annual General Meeting.
Results of Annual and Special General Meeting
The Annual and Special General Meeting of Shareholders (the “Meeting”) of the Company was held on December 18, 2018 in Vancouver, BC. At the Meeting, shareholders approved all resolutions put before them by management including the election of all management nominees for the board of directors, the appointment of the auditor, the approval of the Company’s incentive stock option plan, the sale of the Opawica mineral claims, the continuation of the Company into British Columbia and the Plan of Arrangement including the shareholder distribution of 2,000,000 shares Mosaic Minerals Corp.
Opawica Sale
The shareholders approved the sale of the Opawica property to Mosaic Minerals Corp. for 7,200,000 shares of Mosaic plus a 2% Net Smelter Return royalty (“NSR”) (see news releases June 28 and August 9, 2018). The TSX has approved the release of the Mosaic shares from escrow and the transaction is fully closed.
The purchase price is a 100% recovery of Stellar’s $360,000 of historical cost, and the 2% NSR provides for long-term upside benefits for Stellar shareholders if a discovery is made.
Continuance and Mosaic Share Distribution via Plan of Arrangement
The shareholders approved the continuation of the Company into British Columbia and the Plan of Arrangement including the shareholder distribution of 2,000,000 shares of Mosaic Minerals Corp.
It is anticipated that the Mosaic share distribution will occur in early January 2019.
Shareholders are encouraged to read the December 20, 2018 news release in its entirety.
