Gold production in the DRC: Central African Gold buys 60% interest in the Zani-Kodo project for 55 million USD

Central African Gold is a Canadian natural resources company focused on the acquisition, exploration and development of cobalt and copper mining properties in the DRC. Its first major acquisition nonetheless relates to a gold project, a decision which can be justified by the price of the yellow metal for more than a year.

The Zani-Kodo gold project in northeastern DRC will change hands. The junior mining company Central African Gold has in fact acquired a majority stake of 60% in this asset from a third party whose identity has not been disclosed. The transaction is worth $ 55 million, an amount split between cash payments and the assumption of certain seller obligations.

“This acquisition is an important step and a highlight for Central African Gold,” said Yves Kabongo, CEO of the company listed on the Canadian stock exchange TSXV. It must be said that with inferred and indicated gold resources exceeding 2 million ounces, according to an estimate published in 2012 by Mwana Africa, the former owner of the project, Zani-Kodo is the first major acquisition of the company.

So far, Central African Gold had just reached an agreement with a Congolese public company for a joint venture in five gold concessions in Kasai Central.

Note that the Zani-Kodo project acquisition agreement remains subject to regulatory approvals and positive due diligence. If finalized, Central African Gold will need to conduct exploration work to confirm the 2012 estimates before considering further studies on the economic viability of the project.

Central African Gold has six concessions strategically located in the south of the DRC CopperBelt, 100% owned by the company and covering more than 170 km².