The company currently has a 75% interest in the Baoulé project and a 100% interest in the Liberia project.
The terms of the joint venture agreements remain as announced on July 28.
Stellar Chief Executive Karl Smithson commented: “Stellar is focused on the proposed Tongo-Tonguma transaction in Sierra Leone, as previously announced. As such we are delighted to finalize these joint ventures on terms which are highly attractive to Stellar and our shareholders, who will retain an on-going interest in the projects, including a proportion of any revenues commensurate with each parties’ shareholding during each particular Phase. Stellar’s experienced local teams will manage the programs for at least the first Phase of work, for which the company will receive a management fee. We expect the first phase of work to commence on each project towards the end of November.
“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. The combined Tongo-Tonguma project demonstrated robust economics in a Preliminary Economic Assessment, with an estimated pre-tax project NPV (10) of $172 million, an IRR of 49%, and projected life of mine project revenues of $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.”
