PERTH (miningweekly.com) – ASX-listed Amani Gold has signed a memorandum of understanding (MoU) over a package of ten gold tenements in the Democratic Republic of Congo (DRC), known as the Gada gold project.
The Gada project is located some 80 km from Amani’s own Giro project, with the company telling shareholders on Tuesday that the Gada project offered a significant material opportunity for value enhancement.
“Given the location, geology and scale of the tenement package, it is clear that the package is highly prospective for large gold mineralisation,” the company said in a statement.
“Subject to positive due diligence, the Gada gold project can be a great addition to Amani Gold. We know the geology, mineralisation and have proven at Giro that we know how to explore and discover gold deposits in this part of the DRC,” said Amani technical director Grant Thomas.
“The acquisition of this package would see Amani as one of the major gold tenement holders in the DRC in a proven gold producing region nearby to the 600 000 oz/y gold mine at Kibali.”
Amani has 60 days in which to complete a legal and technical due diligence on the Gada project.
Once a decision to proceed has been taken, the company would issue vendor BN Mining with 30-million shares and would settle the outstanding liabilities of BN Mining to the value of some $820 000.
Subject to shareholder approval, Amani would also issue 30-million shares to the party that introduced the Gada gold project.
Furthermore, the company would be responsible for funding and managing all gold exploration, including completion of a detailed feasibility study within three years after signing a definitive agreement. A two-year extension can be secured on the delivery of the detailed feasibility study after due assessment.