pcNewsWire – Stellar AfricaGold Inc. (TSX-V: SPX) has closed 2nd and final tranche of a non-brokered private placement, issuing 8,000,000 units at $0.05 per unit for proceeds of $400,000. Together with first tranche of 9,010,000 unit for proceeds of $450,500, total proceed raised in the financing is $850,500.
Proceeds will be used to advance the company’s bulk sampling program at Zone B3 Balandougou in Guinea and for general working capital.
News Release
STELLAR AFRICAGOLD ANNOUNCES SECOND AND FINAL CLOSING OF OVERSUBSCRIBED PRIVATE PLACEMENT FOR A TOTAL OF $ 850,500
Montreal, June 9, 2017 – John Cumming, President and Chief Executive Officer of Stellar AfricaGold Inc., (TSX-V: SPX) (“Stellar” or the “Company”) announces the closing of the last tranche of a non-brokered private placement, for a total of 8,000,000 units, at a price of $ 0.05 per unit, for aggregate proceeds of $ 400,000 and the first one of a total of 9,010,000 unit for aggregate proceeds of $ 450,500. Total proceed raised in the financing is $ 850,500.
Each unit is comprised of one common share and one share purchase warrant entitling the holder to purchase one additional common share at an exercise price of ten cents for a period of 12 months.
The net proceeds from the offering will be used to advance the Company’s bulk sampling program at Zone B3 Balandougou in Guinea and for general working capital. Registered Exempt Market and Broker Dealers in Canada received cash payments of $ 15,140 and 302,800 broker warrants to purchase up to 302,800 common shares in the capital stock of the Company, at a price of $0.10 per common share, within a delay of 12 months after the closing.
The transactions constituted a related-party transaction within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 as certain insiders of the Company have subscribed for 3,900,000 units, approximately 23% of the Offering at a cost of $195,000. The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101, as the Company is not listed on a specified market and the fair market value of the participation in the offering by insiders does not exceed 25 per cent of the market capitalization of the Company, as determined in accordance with MI 61-101.
ABOUT STELLAR AFRICAGOLD INC.
Stellar AfricaGold Inc. is a Canadian gold exploration Company based in Montreal, Quebec, with operations concentrated mainly in West Africa and in Quebec.
The Company is currently developing the promising gold potential of the advanced exploration stage Balandougou project in Guinea, including a 15,000-tonne bulk sample program. (see News Release March 1, 2017) The Company also owns the Namarana project in neighbouring Mali. In Quebec, the Company owns 100% of the Opawica Project in the Chibougamau mining camp.
The technical content of this press release has been reviewed and approved by independent consultant Greg Isenor, P. Geo, a Qualified Person as defined in NI 43-101.
For further information please contact Maurice Giroux, VP Exploration, Stellar AfricaGold Inc., 410 St-Nicolas, Suite 236, Montréal (Québec) H2Y-2P5. Tel.: 514-866-6299 Email: mgiroux.stellar@gmail.com or access the Company’s website at www.stellarafricagold.com.
On Behalf of the Board
John Cumming, LLM,
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
