Stellar Diamonds plc has entered into conditional share purchase agreements with Gold Knight Limited, a wholly owned subsidiary company of BDG Capital Limited (BDG) for the proposed sale of Stellar’s assets in the Republic of Guinea, the Company announced, providing an update to information it had released earlier, in June and August this year.

Stellar said that a final purchase price of US$ 1,250,000 has been agreed for the Transaction, following a due diligence exercise conducted by BDG.

Thus far, Stellar has received US$ 500,000 which has been added to the Company’s working capital since June.

“Completion of the Transaction and receipt of the balance of funds is conditional upon payment by Stellar of certain government taxes in Guinea, amounting to approximately US$ 123,000 which are due by Stellar’s locally incorporated subsidiary in Guinea which is being sold,” Stellar explained. “Completion is expected to occur later this month.”

Stellar’s Chief Executive Karl Smithson commented: “We are delighted to be able to bring the disposal of our Guinea assets to a close. Stellar’s carrying cost in Guinea is approximately US$ 70,000 per month and we look forward to focusing our resources exclusively on progressing the high-grade and high value 4.5 million carat Tongo-Tonguma kimberlite mine development project in Sierra Leone.”