Stellar sees potential in JV for Baoulé kimberlite and Liberia projects

Stellar Diamonds plc, announced the signing of binding heads of terms with Citigate Commodities Trading (Citigate), a Dubai based commodities group, to form joint ventures over the Baoulé kimberlite project in Guinea, and over two new exploration licences in western Liberia recently awarded to Stellar. The Baoulé kimberlite project has a resource target of approximately 3 million carats.

The proposed joint ventures remain conditional upon completion of due diligence by Citigate and the parties entering into definitive joint venture agreements for each project.

Stellar Chief Executive Karl Smithson said, “The terms of the joint ventures are highly attractive to Stellar in that we have essentially secured a free carried interest at both Baoulé and our new Liberian licences.” He further notd that, These joint ventures allow the key management of Stellar to focus efforts on the development of our high-grade Tongo project in Sierra Leone as we progress towards the mining phase, whilst retaining equity positions in both the Baoulé and Liberia projects.”

Highlights of proposed Baoulé Joint Venture include staged earn-in by Citigate of up to 75% of the Baoulé project, Stellar to be paid an up-front Phase-1 management fee of US$150,000 on signing full JVA, Stellar to receive 56.25 percent of gross revenues from Phase-1 trial mining, Citigate awarded off-take rights on goods exported during the Citigate earn-in process. The highlights of proposed Liberia Joint Venture include two new exploration licences recently awarded to Stellar, staged earn-in by Citigate of up to 85 percent of the Liberia licences, Stellar to be paid an up-front Phase-1 management fee of US$25,000 on signing of full JVA and to receive pro-rata revenues from any diamond sales during any phase of earn-in, Citigate awarded off-take rights on goods exported during the Citigate earn-in process.