VEC’s African gold project acquisition nears completion
Published 16-JAN-2018 10:06 A.M.
3 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Finfeed presents this information for the use of readers in their decision to engage with this product. Please be aware that this is a very high risk product. We stress that this article should only be used as one part of this decision making process. You need to fully inform yourself of all factors and information relating to this product before engaging with it.
African-focused gold exploration company, Vector Resources (ASX:VEC) has successfully completed a site visit and technical due diligence review for the purchase of 60 per cent of the Adidi-Kang Gold Project.
This completes the due diligence period under the Heads of Agreement it executed with Mongbwalu Gold Mines SA and Fimosa Capital Limited. VEC has issued a notice of satisfaction of the due diligence to the two parties, confirming that it will proceed with the transaction.
VEC’s technical team’s recent visit to the Adidi-Kanga Gold Project, was to assess the historical exploration and resource drilling, review the mining and metallurgical Feasibility Study work that was previously completed by Anglo Gold Ashanti, and inspect the significant mechanical mining equipment that’s on site.
On 5 January 2018, VEC provided an update on the progress of its due diligence activities, reporting that it had not identified any major issues or highlighted any areas of concern. With the technical and legal due diligence now completed, VEC has confirmed that this earlier statement remains true and it has not identified any material or significant flaws.
A number of positive findings were identified in the due diligence review, in particular the opportunity to incorporate additional areas of mineralisation defined by previous wider spaced drilling by AngloGold Ashanti into a new JORC 2012 compliant Resource, which VEC intend to complete in the March 2018 quarter.
Overall this is an early stage play and as such any investment decision should be made with caution and professional financial advice should be sought.
The review by VEC’s technical team of the estimated 115 sea containers – that approximate 70 per cent of the mechanical equipment required for the first process module under the previous AngloGold Ashanti Feasibility Study – was also extremely positive and the team noted that much of the equipment had not been touched and had been appropriately secured at the site. This equipment will be reviewed in more detail as soon as possible.
As outlined in an announcement on 22 December 2017, VEC will pay US$5 million in cash and US$5 million of ordinary shares in the company 10 days after the execution of the formal transaction documentation.
All that’s required now for the proposed acquisition is the completion and documentation of the joint venture agreements between the parties, as well as obtaining shareholder approval for the issue of the VEC shares. The company intends to hold an Extraordinary General Meeting of its shareholders as soon as practical.
No further issues were discovered in relation to the development and mining approvals in place, which as previously noted includes a completed Environmental and Social Impact Assessment and financial guarantees in place with the appropriate regulatory and administrative bodies in the DRC.
VEC, MGM and Fimosa Capital continue to advance the transaction documentation and remain confident that this can be completed towards the end of January 2018. VEC will seek approval to hold its EGM as soon as possible after the transaction is complete.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.