This was "in anticipation of the positive completion of the JV", which was expected in February 2008.
The parties intended to accelerate their investment programme to further develop Mukondo Mountain, the Luita plant, as well as the mining concession areas previously known as C17, C18, C19 and C21.
Cobalt production from Mukondo was under way and the Kakanda concentrator was being reopened. The parties agreed on an initial monthly production target from Luita and the Kakanda concentrator of 400 t of cobalt metal contained. This target would rise to 1 000 t/m by the year-end.
The announcement of the JV company to own, operate and develop Mukondo Mountain, as well as control the copper cobalt SX/EW facility at Luita and the Kakanda cobalt concentrator, came in November 2007.
"We are delighted to be strengthening our relationship with Prairie in this way. We believe that significant value will be created for Camec and its shareholders through this closer working relationship with Dan Gertler, one of the leading and most successful investors in DRC," said Camec CEO Andrew Groves after the announcement.
In January Prairie, in which Israeli mining investor Gertler's family trust is the major shareholder, said that ex-Harmony Gold CEO Bernard Swanepoel would play a "lead role" for Prairie in the company's JV with Camec.
The companies indicated that they felt Mukondo Mountain was the richest cobalt mine in the world.
Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
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