(Ecofin Agency) - Mining firm Amani Gold signed with Chinese Luck Winner Investment a memorandum of understanding (MoU) for a $25 million investment in the Giro gold project, in DR Congo. The funds which will be raised via the placement of 500 million shares at a unit price of 5c, will be used to finance metallurgical testwork and drilling for feasibility studies.

After the fundraising, Luck Winner, will be holding a 28% interest in the issued shares of Amani Gold. However, the deal is still subject to the successful completion of due diligence for the project and to shareholders’ approval.

“Subject to completion, this capital raising will put Amani in a very strong position to take the Giro gold project through to completion of feasibility studies […],” said the Amani’s chairman, Klaus Eckhof.

Formerly known as Burey Gold, Amani Gold holds in DR Congo the Tendao and Giro projects.

Louis-Nino Kansoun