24th Jan 2014 10:33
LONDON (Alliance News) - Stellar Resources PLC Friday said Gold Mines of Wales (Operations) Ltd, in which Stellar owns 49.9%, agreed a 12-month extension of its exclusive option agreement with the Crown Estates.
The exploratory mining company, with operations in South Wales, said GMOW holds an exploration licence covering an area of 120 square kilometres, which includes the Dolgellau Gold Belt and the historic Clogau Gold Mine.
The company said that some of the underground areas at the site have the potential to form the basis for a phased re-start of commercial mining operations, and it is working with partners and authorities on how best to achieve this.
"GMOW will continue the exhaustive work of re-opening the extensive underground workings and assessing the best method of potentially commencing trial mining operations in the district," Stellar Executive Chairman David Lenigas said in a statement.
Lenigas also is chairman of Leni Gas & Oil PLC and Solo Oil PLC.
Stellar recently began adding new operations to its portfolio. It signed a binding term sheet to acquire an initial 20% shareholding in Boletus Resources Ltd, which operates in Indonesia, for USD400,000 earlier in January.
Stellar shares were up 3.6% to 0.570 pence, putting it in the top twenty AIM movers Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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