News Summary
The most recent news, dated December 9, 2025, announces that Stellar AfricaGold’s subsidiary, Aucrest SARL, has entered into an earn-in and joint venture (JV) agreement with MetalsGrove Mining Ltd. for the Zuenoula Gold Project in Cote d’Ivoire.
Under the terms, MetalsGrove can earn a 50% interest by funding US$3.15 million in exploration expenditures by April 2029 and making a US$50,000 cash payment to Stellar. MetalsGrove has the option to increase its stake to 80% by sole-funding an additional US$3 million. Stellar will also receive a US$1 million success payment if a JORC-compliant resource of 1 million ounces of gold is defined. This agreement allows Stellar to advance Zuenoula without diverting capital from its flagship Tichka Est Gold Project in Morocco, where a 1,500-metre diamond drill program is ongoing.
Material Impact
This JV agreement is a material positive for Stellar. For a junior explorer with limited capital, advancing multiple projects is a significant challenge. This deal effectively outsources the exploration funding and risk for its secondary Zuenoula project to a partner.
– Capital Preservation: The key benefit is the preservation of capital. Following its recent $4 million financing, Stellar can now focus its entire treasury on its flagship Tichka Est project in Morocco. This is critical, as Tichka Est has delivered highly promising initial drill results and represents the company’s primary value driver.
– De-risking and Retained Upside: Stellar eliminates exploration spending at Zuenoula while retaining a significant carried interest (initially 50%, potentially diluting to 20%) and a valuable $1 million success payment contingent on a major discovery. This is an intelligent way to manage a non-core asset.
– Strategic Focus: The transaction allows management to concentrate its technical and operational efforts solely on Tichka Est, where recent results have generated significant market interest.
The agreement itself is structured with standard earn-in terms. The exploration milestones are spread over several years, which is typical for an early-stage project. While this news is positive, the market’s primary focus remains squarely on the pending drill results from Morocco. This JV is a positive, strategic corporate development, but it is not the main catalyst for the stock.
Catalysts
– Immediate: The most critical upcoming catalyst is the release of assay results from the remaining drill holes of the 1,500-metre program at Tichka Est. The December 2, 2025 update stated seven of nine holes were complete, with results from only the first hole released. Assays for the other holes are pending and will be crucial in determining the continuity and potential scale of the Zone B discovery.
– 3-6 Months: Following the receipt of all assays, watch for an updated 3D geological model for Tichka Est. This will guide the next phase of drilling. Also, look for initial exploration updates from the new JV partner, MetalsGrove, on the Zuenoula project.
Materiality Conclusion
The JV agreement is materially positive. It demonstrates prudent capital management by finding a non-dilutive funding solution for a secondary asset, thereby allowing the company to concentrate its resources on its flagship Tichka Est discovery. While not a game-changer in itself, it strengthens the company’s strategic and financial position to pursue its primary objective.
