By Matthew Hill & Olivia Spadavecchia

Shortly after Democratic Republic of Congo (DRC) copper-and-cobalt miner Camec said that it had conditionally raised £43,5-million to accelerate its mining projects in that country, it announced it had received the long-awaited validation of its mining licences.

Camec, which has encountered political problems in the country – allegedly thanks to its links with controversial businessperson Billy Rautenbach – said that the “Avis Cadastral Favourable” it received from the mining cadaster confirmed its mining rights.

That was one of the conditions for the agreement that it entered into with Israeli investor Dan Gertler-linked Prairie International and State-owned mining company Gécamines to go through.

“We believe that we are in the process of building a substantial mining operation in the DRC and have plans to invest further to grow this business significantly,” said Camec CEO Andrew Groves.

The joint-venture agreement that the three companies had signed would see Camec and Prairie transferring their respective copper mining concessions in the DRC into a new holding company, with Gecamines getting a 30% stake.

The £43,5-million raised through the placing of 72,5-million new ordinary shares to accelerate the development of the DRC assets.

The company would, in particular, focus on the Luita copper/cobalt solvent extraction and electrowinning facility, to rapidly achieve its existing production targets of 100 000 t/y of copper cathode, and then seek to develop further production capacity as quickly as possible.

The funds raised through this placing would also be used for the development of Camec’s own sulphuric acid plant, upgrading the Kakanda concentrator, and to expedite intensive exploration of certain concession areas.

The placing monies would initially be held in escrow, as the placing was conditional on the formal completion of the JV agreement.

Last Monday, Camec and Priarie agreed to pay the DRC’s Gécamines some $2-million and to raise the State-owned firm’s share in their mining venture to 30% to secure its rights in that country.

This agreement was conditional on the receipt of the necessary approval from the mining cadaster in the DRC in respect of the licences held by Boss Mining and Mukondo Mining.

Camec would now swap 39% of its shares for Prairie's holding in the JV company.

The DRC government last year undertook a review of all mineral concessions in the country, and last month, it began sending letters to companies notifying them of the problems it had with their contracts.

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