Gold miners Anglogold Ashanti and Randgold Resources on Monday announced that they would jointly acquire a further 20% stake in the Moto gold project in the Democratic Republic of Congo (DRC), from Congolese parastatal L'Office des Mines d'Or de Kilo-Moto (Okimo) for $113,6-million.

Previously, the two companies announced the acquisition of Moto Goldmines, the gold exploration and development company which had a 70% interest in the project. Thus, when the transaction was complete, Anglogold Ashanti and Randgold Resources would own 90% of the Moto gold project.

“This increases our participation in the Moto Gold project, which is an important part of our future growth plans. We look forward to working closely with the DRC Government and continuing our successful, decade-long partnership with Randgold to bring resource to account,’’ said AngloGold Ashanti CEO Mark Cutifani.

"We see a great value opportunity in the Moto Gold Project, which is one of the largest undeveloped gold deposits in Africa and has the potential to become a truly world-class asset alongside our other recent discoveries.  It marks our expansion into a new and exciting gold belt, and whilst the project is not without its challenges, the Randgold capital projects team, which will be responsible for the Moto Gold Project is the same one which has successfully developed the Morila and Loulo mines in Mali and is currently building the Tongon mine in Côte d'Ivoire," added Randgold CEO Mark Bristow.

Anglogold Ashanti explained that the acquisition would be effected through the purchase from Okimo of 20% of the issued share capital of Kibali Goldmines, which will be held through Kibali (Jersey), a company that is jointly owned by AngloGold Ashanti and Randgold, and the same vehicle which holds AngloGold Ashanti and Randgold’s recently acquired joint venture interests in Moto.

AngloGold Ashanti and Randgold said that they have secured commitments from the Government of the DRC in respect of Kibali’s exploitation permits and licenses, as well as the existing DRC mining legislation, and the fiscal regime under which the project will operate under a protocol to be entered into between Moto, Kibali (Jersey) and the Government of the DRC, and a declaration from the Government of the DRC.

Under this agreement: the renewal of all the exploitation permits held by Kibali Goldmines would be authorised by the Government of the DRC subject to compliance with the provisions of the DRC mining legislation; for so long as the Moto Gold Project is in commercial production and provided that Kibali Goldmines complies with the DRC mining legislation, all exploitation permits held by Kibali Goldmines shall be renewed on their earliest renewal dates; and the Government of the DRC acknowledges that no further payment shall be required in relation to the acquisition of Moto by AngloGold Ashanti and Randgold.

A feasibility study on the Moto Gold Project completed by Moto in March 2009, envisages an open pit and underground mining operation with probable mineral reserves of 5,5-million ounces which is planned to produce about 2,4-million ounces of gold in its first five years of operation. 

The Randgold capital projects team would be responsible for the Moto Gold Project.

Based on this feasibility study, in conjunction with the acquisition of 50% of Moto completed earlier this month, the acquisition will increase Randgold's attributable mineral reserves by 2,5-million ounces, its measured and indicated resources by 5,1-million ounces and its inferred resources by 5,1-million ounces.

Anglogold Ashanti noted that the acquisition increased its ore reserves and mineral resources by 2,5-million ounces and its existing attributable mineral resources by about 10,1-million ounces.