PERTH (miningweekly.com) – Minerals and metals explorer Amani Gold on Tuesday announced a $30-million transaction to divest of its Giro gold project, in the Democratic Republic of Congo (DRC).

The company has signed a binding term sheet with Mabanga Mining SARL for the sale of Amani’s shareholding in its DRC-based entity Amani Consulting, which holds the Giro project.

Mabanga will acquire Amani’s 850 shares in the subsidiary, representing 85% of the total issued share capital in Amani Consulting, which in turn holds a 65% interest in Giro Goldfields, which holds the two exploitation permits making up the Giro project. The DRC government, through Société Minière De Kilo Moto SA (SOKIMO) holds the remaining 35% share in the project.

Amani told shareholders on Tuesday that the $30-million purchase price offered for Giro represented a value increase of around 75% above Amin Gold’s current market capitalisation, with the cash consideration providing the company the opportunity to pursue new assets.

The company also anticipated that geopolitical circumstances in the region could worsen in the future, resulting in large-scale gold projects such as Giro becoming less attractive to potential acquirers or investors. General elections are scheduled to be held in the DRC in December 2023. Furthermore, Amani noted that further development of the Giro project would require substantial funds, which would most likely need to be raised through the issue of equity, diluting existing shareholders.

Under the terms of the agreement, a first tranche payment of $5-million will be due on the execution of a term sheet, with a second tranche of $8-million due within one year of the first tranche. A third $8-million payment will become due one year after the second tranche payment, and a fourth tranche of $9-million will be payable on the one year anniversary of the third tranche payment.

The transaction is subject to shareholder, regulatory and third-party approvals.

The Giro project is located 35 km west of Randgold/Anglo Ashanti’s producing 16-million-ounce Kibali mine and comprises two permits covering 497 km² in the Moto greenstone belt.

The project includes the Kebigada deposit, which hosts a 3-million-ounce maiden indicated and inferred mineral resource, grading at 1.46 g/t gold.