Stellar Diamonds plc, a West Africa diamond development company, has signed binding heads of terms with Dubai's Citigate Commodities Trading over joint ventures in Guinea and Liberia. The deal relates to the Baoulé kimberlite project in Guinea, which has a resource target of approximately three million carats, and over two new exploration licenses in western Liberia, which have recently been awarded to Stellar. 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 have "essentially secured a free carried interest at both Baoulé and our new Liberian licenses". Stellar will "receive a proportion of revenues from on-going trial mining at Baoulé at zero cost and have an up-front payment for managing the projects during the first phase of work. 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.”