Renewal of License

RNS Number : 1159W

CSS Stellar PLC

25 January 2012

 

25 January 2012

CSS Stellar plc

("the Company")

Renewal of License

CSS Stellar Plc (AIM: CSS) is pleased to announce that the Exclusive Option Agreement (the "License") granted to Gold Mines of Wales (Operations) Ltd ("GMOW") has been renewed for 12 months from 10 February 2012.

The License was originally granted by The Crown Estates Commissioners, acting in exercise of the powers of the Crown Estate Act 1961 on behalf of her Majesty the Queen, to explore and sample gold and silver over about 120 square kilometres covering the majority of the Dolgellau gold belt in the County of Gwynedd in Wales. The exploration area covers the two largest gold mines in the region, the Clogau St David's and Gwynfynydd mines. Until then, no one company had the rights to systematically explore the entire gold belt with modern exploration techniques. The area is known to host several different minerals apart from gold and silver, including copper, lead and zinc. GMOW is in the process of securing base mineral rights over the entire area.

An independent expert's report is currently being prepared by Al Maynard and Associates, an independent geological consultancy. This report will assist in ascertaining a regional exploration plan using the latest exploration techniques and will target priority exploration areas.

On 2 December 2011, CSS Stellar plc announced that it had completed an agreement to acquire 49% of the issued share capital of Gold Mines of Wales Limited which, through its wholly-owned subsidiary GMOW, holds the License.

David Lenigas, CSS Stellar Director, commented;

"This significant milestone allows the Company to prepare for the area's first concerted regional exploration programme covering the Dolgellau greenstone belt. CSS Stellar also plans to work with GMOW and the local authorities to assess the economic viability of re-opening meaningful gold mining operations. In the meantime, we await the findings of the independent geological report and look forward to providing the results of this as soon as it is ready."

For further Information, please contact:

CSS Stellar plc          

David Lenigas                                                                         Tel: [phone]

Northland Capital Partners Limited (Nominated Adviser and Broker)

Luke Cairns / Edward Hutton                                                  Tel: [phone]

 

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