https://www.miningweekly.com

Red Rock mulls potential investment in DRC copper/cobalt tailings project

26th September 2017

By: Creamer Media Reporter

     

Font size: - +

JOHANNESBURG (miningweekly.com) – Aim-listed Red Rock Resources (RRR) has entered into a conditional agreement with private Isle of Man company Cobalt Blue to acquire an interest in a new joint venture company (JVCo) that will be established for the exploitation of four copper/cobalt tailings properties near Kolwezi, in the Democratic Republic of the Congo (DRC).

JVCo will hold the rights to exploit the Kamirombe 1 and 2, Haute Kalumba and Basse Kalumba tailings properties.

RRR will have 40 days to conclude a due diligence and, if it decides to proceed with the transaction, it will acquire a 26.25% interest in JVCo for $700 000 in cash and £490 000 in shares. It will also fund $1.2-million of exploration expenditure over 18 months to produce a bankable feasibility study (BFS) at the Kamirombe properties.
 
Following completion of the BFS, RRR will have six months within which to elect to pay $1-million to farm-in to a further 26.25% of JVCo.

“The old, rich copper/cobalt mines on the Congolese part of the Copperbelt have been producing for many decades, and some of the tailings are known to be attractive targets at today's prices and with today's technology.

“The electric car revolution is expected to have transformative impacts on battery technology and the metal demand pattern. We expect copper to be a beneficiary, but the long term impact on cobalt demand is likely to be stronger,” RRR chairperson Andrew Bell commented on Tuesday.

He added that this opportunity could potentially add significant value for RRR.
 
“From a technical point of view, this is a potentially low-risk and high cash flow project, and we expect to have geologists on site conducting testwork within days,” he said.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Stewarts & Lloyds
Stewarts & Lloyds

Stewarts & Lloyds today supplies steel and tube, pipe and fittings, valves, pumps, irrigation, fencing, profiling and roofing products. The cash...

VISIT SHOWROOM 
Yale Lifting Solutions
Yale Lifting Solutions

Yale Lifting Solutions is a leading supplier of lifting and material handling equipment in Southern Africa. Yale offers a wide range of quality...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.113 0.15s - 112pq - 2rq
Subscribe Now