(Ecofin Agency) - Junior mining company Vector Resources signed with African Royalty Company an agreement to acquire a 70% stake in the Maniema gold project, in DR Congo, as well as other gold prospects and exploration permits. According to the agreement, African Royalty will forego its rights in the project, by virtue of an agreement it had signed with WB Kasai Investments Congo (WBK), the former owner of the project.

Regarding modalities of the transaction, Vector resources will pay, overall, if decided that the project will be developed, $950,000 in cash and $2 billion in shares, as well as additional royalty payments. It will also be granted a pre-emptive right to acquire an additional 10% in the project, in the case a resource of more than a million ounces (based on JORC code) at a grade greater than 2.5g/t gold is determined.

The company also said it will raise $1.65 million for exploration activities at the project, over the next 12 months.

The Maniema gold project includes seven exploration permits and extends over an area of more than 500 km². In the same region where it is located are Banro Corp’s Namoya and Twangiza projects, and the Kibali mine which is owned by Randgold Resources and Ashanti Gold.

Louis-Nino Kansoun