AJN announces it won’t pursue Sokimo’s Kibali deal
Canadian junior AJN Resources will not continue with the proposed acquisition of a 10% interest in the Kibali gold mine in the Democratic Republic of the Congo (DRC), the company said on Sunday.
AJN announced on February 6 that it had concluded a Memorandum of Understanding (MoU) with state Sokimo to acquire multiple rights in the Democratic Republic of Congo, including a 10% interest in the Kibali gold mine.
The global majors, Barrick and AngloGold, each own 45% of Kibali and said they would not approve the sale or transfer of Sokimo’s shares in the joint venture.
The Reuters news agency reported last week that Barrick AJN had issued an injunction to block the transaction
AJN’s stock has tripled from CAD 0.35 per share to CAD 1.20 per share following the announcement of its February 6 letter of intent. The company’s stock price reversed almost all of these gains last week when Barrick blocked the transaction. The share closed at $ 0.40 a share on Friday.
