Africa-focused gold-miner Randgold Resources has increased its stake in the Tongon project, in Côte d'Ivoire, from 76% to 81%.

The group had bought the additional 5% from its joint-venture (JV) partner New Mining CI (NMCI) for $2-million in cash plus a 'funding option', Randgold said in a statement on Monday.

NMCI now owns 9% of the project, which is scheduled to start production in 2010, and the government of the Côte d'Ivoire holds the remaining 10%.

However, if NMCI opts not to fund its portion of the Tongon development, Randgold Resources will provide the funding on its behalf in exchange for a further 3% of the project.

The funding would be repaid from the project's future cash flows.

Randgold Resources announced in February that its board had given the go-ahead for the $270-million Tongon project.

The project will involve the construction of a 300 000-t/m gold mine, with a life-of-mine of over ten years.

Site establishment had begun and mine construction would start later this year, Randgold said on Monday.

Randgold and NMCI had also amended their JV agreement, which had applied to all Randgold's assets in the Côte d'Ivoire to restrict it to “opportunities found by Randgold Resources or introduced by NMCI”, which meant that the agreement no longer covered transactions entered into with third parties by Randgold.

"We're pleased that we've been able to increase our interest in Tongon and in our Ivorian joint venture while retaining NMCI as a partner," said CE Mark Bristow.

"We’re on record as being great believers in the future of this country, which is not only highly prospective but still relatively unexplored, and has one of the best infrastructures in this part of the world."

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