Stellar Diamonds, a diamond development company focused on West Africa, has signed joint venture agreements with Citigate Commodities Trading, a Dubai-based commodities group, concerning the Company’s Baoulé kimberlite project in Guinea and two earlier stage exploration licences in western Liberia, which were awarded to Stellar in February 2016. The Company currently has a 75% interest in the Baoulé Project and a 100% interest in the Liberia Project. The press release contains the relevant details, foremost among which are that Citigate’s subsidiary company SAFA Afrique Ltd. will gradually acquire up to 75% of Baoulé and up to 85% of the Liberia project over a staged period of three years provided it honors the investment terms of the contract.
Stellar Chief Executive Karl Smithson commented: "We are delighted to finalise these joint ventures on terms which are highly attractive to Stellar and our shareholders, who will retain an ongoing interest in the projects, including a proportion of any revenues commensurate with each parties’ shareholding during each particular Phase ... We expect the first phase of work to commence on each project towards the end of November." Smithson's statement clarifies that, “Importantly, these joint ventures will allow the key management of Stellar to focus on the proposed Tongo-Tonguma transaction in Sierra Leone, which we believe offers significant value potential." He adds that Tongo has, "a projected life of mine project revenues of US$1.5 billion. We therefore look forward to focusing our efforts on the advancement of Tongo-Tonguma, whilst retaining exposure to Baoulé and the Liberian projects.”