2021
Stellar Africagold Increases Private Placement To $1,750,000 and Closes Final Tranche
Vancouver, March 22, 2021 John Cumming, President and CEO of Stellar AfricaGold Inc., (TSX-V: SPX) (“Stellar” or the “Company”) is pleased to announce that Stellar has increased its non-brokered private placement to $1,750,000 and closed on the final tranche.
Private Placement
The private placement financing is comprised of 29,166,667 units at $0.06 per unit for gross proceeds of C$1,750,000. Each unit is comprised of one common share and one share purchase warrant exercisable at $0.15 for 24 months. The net proceeds of the private placement will be used to advance exploration on the Company’s Tichka Est gold property in Morocco and on its Prikro gold property in Côte d’Ivoire, and for general corporate purposes including potential new property acquisitions in Morocco, Mali and Côte d’Ivoire.
Tranche I of the private placement closed on February 26, 2021 with Stellar issuing 11,391,667 units for gross proceeds of $683,500. The Units issued pursuant to Tranche I are subject to an investment hold period until June 26, 2021. The share purchase warrants issued pursuant to Tranche I may be exercised until February 26, 2023.
Tranche 2 of the private placement closed on March 19, 2021 with Stellar issuing 17,775,000 units for gross proceeds of $1,066,500. The Units issued pursuant to Tranche 2 are subject to an investment hold period until July 20, 2021. The share purchase warrants issued pursuant to Tranche 2 may be exercised until March 16, 2023.
Finder’s fees will be paid to ten arm’s length parties in respect of this private placement as follows: $46,267 cash, 1,356,999 shares and 2,178,108 warrants. The shares and warrants issued to finders are subject to an investment hold period until July 20, 2021. The share purchase warrants issued to finders are exercisable at $0.15 per share until March 16, 2023.
One Director of the Company subscribed for a total of 400,000 units of the private placement. Participation of the Director of Stellar in the private placement is considered a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). The transactions are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities to be distributed in the private placement nor the consideration to be received for those securities, in so far as the private placement involves the Insiders, exceeds 25% of the Company’s market capitalization.
Options
The Company also announces that it has granted 4,000,000 incentive stock option to directors, officers and consultants. The options are exercisable for up to five years until March 22, 2026 and will entitle the holder to acquire on common share of the Company at $0.07 per share.
Tichka Est Project, Morocco
The Tichka Est property is comprised of three contiguous prospecting permits covering an area of 44.6 km2. It is located in the Atlas Mountain about 160 km SSW of the city of Marrakech. The area is accessible year-round via a national road to the village of Analghi located near the mineralized gold zone.
On August 19, 2020, Stellar AfricaGold Inc. announced the signature of the final agreement for the acquisition of 90% interest in the Tichka Est Gold Project where anomalous gold concentrations were first discovered during a 2009 regional stream sediments sampling program conducted by Office National des Hydrocarbures et des Mines of Morocco (“ONHYM”). Follow-up geological prospecting and trench sampling indicated that gold mineralization developed along a regional shear zone with high grade samples over significant width including 8.03 g/t Au over 6.30 m and 5.14 g/t Au over 4.9 m.
An independent summary compilation report* (see news release January 5, 2020) commissioned by Stellar reviewed available historical data and the results of a June 2020 due diligence validation program completed by Stellar identified 6 anomalous gold zones with two zone, Zones A and B, warranting priority attention. The Zone A and Zone B prospects are host to multiple high-grade gold intercepts with grades (chip samples in trenches) above 2.0 g/t Au, across widths exceeding 2.0 m and extending along strike for a minimum of 300 meters. Although the property remains at an early stage of development, these two prospects have, individually, the potential to develop a significant gold resource base if mineralization extends vertically and laterally with similar characteristics. A 3-phase exploration program totaling US$ 2,080.000 was recommended.
The Zone A prospect was outlined by a cluster of 85 anomalous gold-in-stream sediment samples over an area of 27.15km2 with assay values ranging from 21 ppb to 17.06 g/t Au. It was prospected with 9 trenches distributed at regular intervals along a strike length of 400 m.
The gold mineralization was found along a steeply dipping ENE-WSW striking regional shear zone that was traced on surface for about 400 m along strike. The shear zone is injected with narrow quartz veins (0.4 to 1.2 m wide) and swarms of veinlets running near and parallel to the intrusive contact with a micro-granitic porphyry dyke. They are, strongly brecciated and mineralized with disseminated and locally semi-massive pockets of pyrite and arseno-pyrite. In outcrops, the sulfide minerals are strongly altered to hematite, goethite, limonite and other alteration products.
The Zone B gold prospect is located about 3.0 km north of the village of Analghi. It was outlined by 27 anomalous stream sediment samples with grades ranging from 33 ppb to 22.33 g/t Au over an area of 6.38 km2. The area was prospected and 10 trenches excavated across the structure over a strike length of 300 m. The trenches exposed a wide brecciated fault zone running ENE-WSW in a highly deformed, altered and fractured sedimentary sequence. Anomalous grades of 0.1 to 4.0 g/t Au over 1.0 m are reported. Within the brecciated sections of the shear zone, the best gold assays are in gossans.
Prikro Permit, Côte d’Ivoire
The Prikro permit comprises a 369.5 km2 exploration licence located in the Prikro and Koun-Fao Departments in eastern Côte d’Ivoire, approximately 240 km northeast of Abidjan. Originally, the licence was selected due to the presence of historical 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 across its southern half. Birimian-age greenstone rocks reportedly crop out extensively across the Prikro licence which are the dominant host setting for gold deposits across West Africa.
ABOUT STELLAR AFRICAGOLD INC.
*The Report titled “Preliminary Technical Evaluation Report of the Gold Potential of the Tichka Est Gold Project, High Atlas Mountains Region, Kingdom of Morocco” by Benoit M. Violette, P.Geo., is effective November 15, 2020. Mr. Violette is an independent consulting geologist to Stellar.
Stellar AfricaGold Inc. is a Canadian gold company with offices in Vancouver, BC and Montreal, QC. Stellar President John Cumming can be contacted at 604-618-4262 or by email at cumming@stellarafricagold.com.
The technical content of this press release has been reviewed and approved by Yassine Belkabir, MScDIC, CEng, MIMMM, a Stellar director and a Qualified Person as defined in NI 43-101.
