TORONTO (miningweekly.com) – London- and Nasdaq-listed Randgold Resources will pay $10-million for another 5% interest in the Tongon gold project, in Côte d'Ivoire, raising its stake to 89%, the firm announced on Wednesday.

The mine is under development and scheduled to start production in late 2010.

Randgold's local subsidiary will buy the 5% interest from partner New Mining Côte d'Ivoire (NMCI) for $10-million in cash, the gold-miner said in a statement.

After the deal closes, NMCI will own 1% of Tongon and the government of Côte d'Ivoire will hold the remaining 10%.

The increased investment was a mark of the company's confidence in Côte d'Ivoire as an emerging gold region, said CEO Mark Bristow.

Randgold produces gold in Mali, and is also studying projects in that country and Senegal. Earlier this year, the company bought the Moto gold project (since renamed Kibali) in the Democratic Republic of Congo.

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