AJN Resources to make Congolese gold investments shine
Canada-listed junior miner AJN Resources dismissed an attempt to block the company’s plan to buy five gold projects in Democratic Republic of Congo and said the country needed it to bring value to the assets.
Civil society groups on Thursday called on the President and Prime Minister to block a draft deal announced in early February, which cabinet meeting minutes showed last week is awaiting their approval.
Under the deal, AJN Resources’ Congo unit would acquire stakes of between 30% and 35% in five gold projects in eastern Congo from state-owned gold company Société Minière de Kilo-Moto (SOKIMO) in exchange for a 60% stake in AJN.
AJN Resources says the agreement would help SOKIMO raise money on international markets to develop the projects.
CEO Klaus Eckhof dismissed a statement from five civil society groups under the banner “Le Congo n’est pas a vendre” (Congo is not for sale) as a joke and told Reuters by phone the assets would have little value without him.
“If I’m in the company [the assets] will have a big value, if I’m not in the company they will have a small value,” he said.
The civil society groups said AJN lacks the financial clout and expertise necessary to revive SOKIMO.
“It seems like AJN needs SOKIMO more than SOKIMO needs AJN,” Jimmy Munguriek, permanent secretary at Ituri province civil society group CdC/RN, said.
AJN Resources has a market capitalisation of C$9.723-million and its June 1 financial statement showed it made a $2.1 million loss in the nine months to April 30.
The February draft deal also set out AJN’s purchase of Sokimo’s 10% stake in the Kibali gold mine, which Barrick Gold operates. Barrick moved to block that purchase, causing AJN to scrap that part of the deal in early March.
AJN plans to acquire from Sokimo its 30% stakes in Zani-Kodo, Nizi, and Kibali South, and 35% stakes in Giro Goldfields and Wanga (Tendao).
Canadian-listed junior miner AJN Resources opposed an attempt to block the company’s plan to purchase five gold projects in the Democratic Republic of the Congo, saying the country needed it to add value to the asset.
Civil society groups on Thursday urged the President and Prime Minister to block a draft contract announced in early February, the minutes of which the cabinet meeting last week is awaiting approval.
Under the agreement, AJN Resources’ Congo unit would acquire between 30% and 35% of five gold projects in Eastern Congo from state gold company Société Minière de Kilo-Moto (SOKIMO) in exchange for a 60% stake in AJN.
According to AJN Resources, the agreement would help SOKIMO raise funds in international markets for project development.
CEO Klaus Eckhof rejected a statement by five civil society groups under the motto “Le Congo n’est pas a vendre” (Congo is not for sale) and told Reuters by telephone that the assets would have little value without him.
“When I’m in the company, the assets are of great value, when I’m not in the company, they are of low value,” he said.
According to civil society groups, AJN lacks the financial influence and expertise to revive SOKIMO.
“It seems that AJN SOKIMO needs more than SOKIMO AJN,” said Jimmy Munguriek, permanent secretary of the Ituri Province CdC / RN civil society group.
AJN Resources had a market cap of $ 9.723 million and the June 1 financial statements showed a loss of $ 2.1 million in the nine months ended April 30.
The February draft contract also included SJimo’s 10% stake in AJN’s Kibali gold mine operated by Barrick Gold. Barrick blocked this purchase and caused AJN to cut this part of the deal in early March.
AJN plans to acquire 30% of the shares in Zani-Kodo, Nizi and Kibali South from Sokimo and 35% of the shares in Giro Goldfields and Wanga (Tendao).
