VEC pens agreement with SOKIMO on multi-million ounce gold projects
Published on: | by Meagan Evans
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Vector Resources Limited (ASX:VEC) today announced that it has signed two binding agreements to finalise joint venture agreements for its 100%-owned Kibali South and Nizi Gold Projects located in the Ituri and Kilo Provinces of the Democratic Republic of Congo (DRC).
Under the agreements, with Société Minière de Kilo Moto (SOKIMO), VEC will now finalise its due diligence and key terms for joint ventures to be established for the exploration and development of the Kibali South and Nizi Gold Projects, which are located in the Ituri and Kilo Provinces in north-eastern DRC.
The proposed Kibali South and Nizi Gold Joint Ventures with SOKIMO are aimed at establishing a long-term partnership to build a major DRC focused gold mining company that benefits all stakeholders.
The Kibali South Gold Project is located adjacent to and within the world-class Kibali Gold Mine. The Kibali Gold Mine is Africa’s largest gold producing mine, developed at a total capital cost of approximately US$2.5 billion, with currently over 27Mozs of gold resources and operated by Randgold Resources (LON:RRS) under joint venture with AngloGold Ashanti (JSE:ANG) and SOKIMO.
VEC’s Kibali South Gold Project has existing inferred mineral resource of 28.1Mt at 1.63g/t gold for 1.47Mozs, quoted under the SAMREC code.
However it is an early stage of this company’s development and if considering this stock for your portfolio you should take all public information into account and seek professional financial advice.
Here is the location of the Kibali South Gold Project relative to the Kibali Gold Mine and Kibali Goldmines licenses:
The Nizi Gold Project, which is located 120 kilometres south east of the Kibali South Gold Project, comprises several identified gold prospects including the Baluma Gold Oxide Project and King Leopold Gold Mine.
Historical production of up to 1.45Moz of gold is reported to have been produced from the King Leopold Gold Mine during the 1900’s, at grades reported to be approximately 30g/t.
VEC’s technical management and members of the Board have already completed a positive technical site visit and preliminary due diligence review and held successful meetings with SOKIMO to discuss ways to ensure a responsible and accelerated development timetable of the two gold projects.
All final due diligence and joint venture negotiations will be completed over the next 90 days, with completion of all outstanding commercial terms and conditions to be satisfied.
VEC has completed a A$3.24 million capital raising to fund finalise diligence, meet up-front costs of the transaction and fund the costs associated with ongoing due diligence of further gold project acquisitions.