Gold explorer and developer Vector Resources is well on its way towards the acquisition of Adidi-Kanga gold project in the Democratic Republic of Congo. The developer is working in collaboration with its joint venture partner Mongbwalu Goldfields Investment. The two are looking to acquire 60% interest in the gold project.
Adidi-Kanga is part of gold major AngloGold Ashanti’s former Mongbwalu gold project and has the potential to be one of Africa’s largest gold mining operations.
Earlier on this month, it was announced that the two companies had satisfied the majority of the key conditions needed to complete the acquisition. Moreover, they were further working to satisfy the remaining conditions by mid this month.
The execution of a committed debt facility is an important and crucial step in finalizing the acquisition process of its interest in the Adidi-Kanga gold project. As such, having secured the same, Vector Resources is now awaiting confirmation from MGI and the local Congolese bank that the condition has been met.
Vector Resources has also received several competing proposals for project funding of up to US $35m. The current proposals, which are being finalized, allow the company to meet the US $5m and US $10m of upfront acquisition costs as well definitive feasibility study costs and initial project development costs respectively.
MGI MD Guy-Robert Lukama said that the company is committed to work towards settlement of the transaction as well as the finalization of the outstanding documentation and satisfy the few remaining conditions precedent. He further added that they are looking forward to mining this project into development. Mr. Lukama also said that the joint venture is working towards the same goal of completing the definitive feasibility study and move towards a decision to mine in the next 12 months.