JOHANNESBURG (miningweekly.com) – Australian junior Vector Resources is negotiating with the Democratic Republic of Congo’s State miner, Sokimo, to establish two joint ventures (JVs), one of which is adjacent to the large Kibali gold mine of Randgold Resources and AngloGold Ashanti.
Vector has signed a binding agreement with Sokimo to finalise JV agreements for its 100%-owned Kibali South and Nizi gold projects in the Ituri and Haut Ele provinces.
The Kibali South project, which has an existing inferred mineral resources of 28.1-million tonnes at 1.63 g/t gold for 1.47-million ounces, has the potential to be a standalone mine, Vector reported on Thursday.
The ASX-listed company explained that the majority of the Kibali South project was located on PE13176, which Sokimo owned. The State-owned company has received an application from Kibali Goldmines, which manages the Randgold/AngloGold JV, to farm-out a portion of PE11467 – one of the main licences that makes up the Kibali gold mine. Kibali Goldmines now has to locate, drill and return to Sokimo new deposits that can be economically mined.
Vector said that part of PE11467 had been “carved out” and would form part of its proposed JV with Sokimo.
The Nizi project comprises several identified gold prospects, including the Baluma gold oxide project and the King Leopold gold mine, about 120 km south-east of the Kibali South project. The King Leopold mine was mined during Belgium colonial times and operated between 1908 and the 1960s.
The company said it would hold at least 60% of the proposed Kibali South and Nizi JVs and would be the operator and manager.
Meanwhile, Vector announced that it had received firm commitments for a $3.24-million private placement to sophisticated investors. The firm would issue 180-million new shares at A$0.018 a share.
The proceeds of the raising would be used to fund upfront costs associated with the two agreements, including the finalisation of due diligence, legal documentation and ongoing due diligence on further gold project acquisitions that the company was pursuing.
Vector has to make upfront payments to its advisers and to Sokimo of $350 000.
Under the terms of the agreements, Vector has 90 days to finalise legal, technical and financial due diligence.