PERTH (miningweekly.com) – ASX-listed junior Vector Resources has launched a definitive feasibility study (DFS) for the Adidi-Kanga gold project, in the Democratic Republic of Congo, after acquiring a 60% share in the project.
Vector on Thursday noted that it has provided the first tranche of financial settlement under the share sale and purchase agreement with Mongbwula Goldfields Investment, consisting of $5-million in cash and a further $5-million worth of Vector shares.
A second tranche payment of a further $5-million in cash and $5-million in either cash or Vector shares will also become due to Mongbwula on a positive decision to mine, while a third tranche payment of a further $5-million in cash and $5-million in either Vector shares or cash, will become payable on the start of commercial gold sales.
With the first tranche payment now made, Vector has launched a DFS into the project, with the aim of taking a decision to mine on the Stage 1, one-million-tonne-a-year underground operation by the fourth quarter of this year.
“The financial settlement of the Adidi-Kanga acquisition allows us to really shift our focus to ramping up our on-ground project development and exploration activities this quarter,” said Vector CEO Simon Youds.
“The assembly of our project team is another great step forward for Vector as we continue to push ahead with our DFS and project development work programmes at Adidi-Kanga.”
Between 2005 and 2013, gold major AngloGold Ashanti spent some $520-million on exploration and development activities at Adidi-Kanga, completing a feasibility study and starting initial mine construction and activities, which included the purchase and installation of some 70% of the mechanical equipment proposed to be installed under the feasibility study.