Vector Resources’ (ASX: VEC) hopes to be one of Africa’s top gold producers have been given a significant boost with the gold junior wrapping up the purchase of a 60% stake in the world-class Adidi-Kanga gold project in Democratic Republic of Congo.
Adidi-Kanga is former AngloGold Ashanti pre-development asset reported to have 15 million tonnes at 6.6 grams per tonne gold for 3.2 million ounces, including 46% in the indicated category.
The deal was originally flagged back in December 2017 when it entered into a Heads of Agreement with Fimosa Capital Limited and Mongbwalu Gold Mines S.A. to establish a new JV to develop the project.
Since then, delays to completing several conditions precedent to the deal has resulted in the transaction being delayed.
However, today Vector said all documentation and associated agreements had now been signed-off.
On the funding side, the company previously executed with FT General Trading LLC a US$35m debt funding package for the acquisition, development and working capital costs.
Vector said acquisition funding was well advanced and includes Tranche 1 acquisition payment of US$5 million in cash to Mongbwalu Goldfields Investments (MGI) within 10 business days of completion and issue US$5 million of shares in Vector to MGI at a price of A$0.022 per share.
Vector’s Chairman Gary Castledine said the completion of the acquisition and associated debt funding was well worth the wait and sets Vector up to become one of Africa’s top gold producers.
With an aggressive development strategy mapped out, the team is now eager to focus its resources on completion of the DFS and on undertaking further exploration across the Adidi-Kanga Gold Project area to fully realise the potential that we believe exists,” he said.
Between 2005 and 2013, AngloGold Ashanti poured US$520 million into exploration and development activities at the project including 173,276m of diamond and RC drilling and completion of a Feasibility Study.
AngloGold also began initial mine construction activities with the purchase and delivery to site of 70% of the mechanical equipment proposed to be installed under the Feasibility Study.
Shares in Vector remain in suspension as the company seeks a waiver to ASX Listing Rules regarding shareholder approval of the Tranche 1 acquisition payment. The ASX is expected to provide an answer to Vector regarding its waiver application by close of business 16th January.
Vector was trading at 2c prior to being suspended.