Stellar Diamonds Plc intends to sell its assets in the Republic of Guinea for US$2 million to BDG Capital Ltd.
The conditional binding term sheet includes a two-month exclusive due diligence period, according to the June 5 release.
Proceeds from the sale will be used to advance the company's flagship Tongo-Tonguma kimberlite project in Sierra Leone.
The disposal comprises certain plant and equipment as well as shares in subsidiary companies, including Ressources Tassiliman Baoulé, which has a 75% interest in the Baoule project; Ressources Mandala Guinee, which holds the Mandala project; and West African Diamonds, which owns the Droujba project.
Additionally, Stellar terminated the joint venture agreements with Citigate Commodities Trading signed in November 2016, citing nonpayment of funds under the contract.
The agreements covered the Baoule kimberlite project in Guinea and two early stage exploration licenses in western Liberia.