AJN Resources & Congo Resources sign a partnership for the development & promotion of Congolese mining assets
Anxious to enhance and promote its mining assets, the Government of the Democratic Republic of Congo through the Ministry of Portfolio has formalized a partnership with AJN Resources with a view to the creation of the company “CONGO RESSOURCES”. This in accordance with the orientations and options raised during the 49th meeting of the Council of Ministers held under the leadership of the Head of State Félix Tshisekedi. The main objective of this new company will be to hold various unexploited permits with high mining potential and to promote them through the financial markets.
According to the briefing note from the Ministry of Portfolio, the valuation system will be done by the transfer of titles (research permits) representing high-potential mining sites within Congo Resources (CR).
“These exploration permits are essentially sites in the gold sector, but in the medium term because other minerals such as lithium and cobalt will be integrated (…). After the integration of these titles within Congo Resources , they will be valued through a cross-shareholding (transfer of shares) in a financial vehicle called AJN Resources, a company listed on the Canadian stock exchange.This is a first for the DRC.Nevertheless, in order to prevent the State does not lose control of this new project, the plan implies that the DRC in exchange for the transfer of these titles, receives 60% of the shares (common shares) of AJN. in the DRC, a monitoring mechanism is integrated which makes it possible to maintain the majority shareholding of the DRC” reads in this document.
In front of the press gathered this Thursday, May 19, 2022 in her office, the Minister of State, Minister of the Portfolio Adèle Kayinda returned to the merits of the creation of this company in partnership with AJN Resources.
“The Democratic Republic of Congo should also draw dividends first of all financially and then from the impact on our population. For us, the approach or the fundamental aspect that we would like to weave from this partnership is that this time it is that the Democratic Republic of Congo is also listed on the Stock Exchange because today with all that we have as deposits, mining assets, we do not have the quality to register, which is why we said to ourselves, we we will first gradually go with the partner who is already registered and who has this notoriety that we can go with him as a joint venture and afterwards, as we evolve, we will also be independent ourselves”, said explained the Minister of State, Adèle Kayinda.
And to continue:
“This innovation that we have just introduced because I can give you one more little explanation. There are people who come and when they forge partnerships with us, in fact they have nothing, they come with our assets allows you to have the legitimacy to be able to raise funds and in itself it’s like they are commissioners and when now he has the contract he signed with the Democratic Republic of Congo, he will now use donors who have funds and that he as a commissioner and finally the one who pulls and we have crumbs now this time we wanted that with the other on the basis of contract where we will be at 60% and that he too we go with the funds that we will raise itthat is to say that we carry our mining assets as a pledge that gives us credibility or we are going to commit ourselves”.
Adèle Kayinda evokes the advantages for the DRC of being recognized on the stock exchange at the international level. Other benefits will be affected in the materialization of development projects in the country.
“With the stock market, you know if it’s done with metals, you manage to raise the value but all of a sudden you’re going to be able to commit a lot of funds and these funds will also allow us to be able to finance “other projects in different sectors (water, electricity, basic infrastructure because for us it will also be a source of financing. We have our deposits, our assets but we must develop ourselves”, added Adèle Kayinda.
She reassured that the file of AJN RESSOURCES was carefully studied before materializing this agreement.
“Why go with AJN? For many people, it does not have a good reputation but know that I had time to study and put all the mechanisms so that we cannot fall into nebulous management and there had at least two meetings of the Council of Ministers where I had presented the very first time, the option was lifted from the creation of CONGO RESSOURCES and the second time when the Council authorized me to draw this partnership with AJN” , she reassured.
During the period of the partnership contract between the companies Congo Resources and AJN Resources, the Congolese State will be represented by two directors on the Board of Directors of AJN Resources in order to look after the interests of the DRC. In the medium and/or long term, the partnership contract also provides for the establishment of its own financial vehicle which will hold all the research permits existing within the AJN or to be acquired.
