Okapi Resources Ltd. said Sept. 26 that it executed a binding term sheet for an option to earn an initial 50% stake in the Tendao gold project, comprising five tenements covering over 1,400 square kilometers in Congo, by investing in license holder Wanga Mining Co. SARL.
The Australia-listed explorer must make staged payments totaling US$7.5 million plus additional payments of up to 35 million shares upon reaching certain exploration milestones.
Okapi will fund the operations up to the completion of a definitive feasibility study. It also holds the first right of refusal for purchasing any equity quota held by the interests of the Tendao project from the other parties.
Meanwhile, Bijoux Lombeya Lotumbe will be named a director for Okapi upon the deal's closing.
Prior owners of the project identified multiple drill-ready targets. Okapi will undertake an exploration program in the near term to fully test and potentially define significant resources at the project.
