Mr. Maurice Giroux reports
STELLAR AFRICAGOLD INC ACQUIRES 31 MINING CELLS ALONG PLAN NORD STORNOWAY NEW ROAD, JAMES BAY, QUEBEC
Stellar AfricaGold Inc. has acquired 31 mining cells from the company 6645488 Canada Inc./Terrax Management Inc. in the Territoire d'Eeyou Istchee, Baie James, Que.
The property is located 350 kilometres north of the town of Chibougamau, Que., and 30 kilometres northeast of the Eastmain gold mine. The Eastmain mine property hosts a high-grade gold-copper-silver deposit originally discovered by Placer Dome. The 31-cell block acquired is adjacent and to the northwest of Soquem's Lac Harbour property and also to the northwest of the Virginia gold property.
This area is part of Quebec's Plan Nord and is now accessible from Chibougamau by the new 243-kilometre-long all-season road to Stornoway's Renard diamond mine. Interest in the potential of this area was recently revived by Visible Gold Mine Inc.'s discovery, at different locations along the road side, of numerous mineralized boulders of high-grade gold, silver, copper and zinc. That discovery reinforced the high probability of the presence of important Chibougamau-type polymetallic deposits in this area.
Maurice Giroux, president and chief executive officer, stated: "At Stellar, we are confident that this area will soon become an active mining camp. The recent opening of that territory by the Quebec Plan Nord initiative will attract more companies interested in this perspective area. Soquem's Lac Harbour gold showing, as well as the Eastmain gold mine project nearby Stellar's acquisition, are both located within the volcanic belt that already demonstrate an excellent potential for some new discoveries. For those reasons, Stellar is currently examining other interesting alternatives to increase its stakes in that area of interest."
According to the agreement, Stellar is buying from the vendor an undivided 70-per-cent of the right and interest in 31 mining cell claims in counterpart of one million shares in the capital of the company. Also, Stellar retains the right to purchase the remaining 30 per cent of the right and interest in the claims, within a six-month period following the acceptance of the agreement by paying an additional one million shares of the capital of the company.
After the closing of the agreement, each party shall contribute its proportionate share of all expenditures in respect of the property equal to its ownership interest therein, with the exception of the first $100,000, which will be spent by Stellar only.
The transaction is subject to the approval of the TSX Venture Exchange and the common shares issued will be subject to a hold period of four months and one day.
We seek Safe Harbor.
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