Amani Gold Ltd. is planning to acquire majority interest 10 gold exploration permits in the Democratic Republic of the Congo, collectively known as the Gada project.
The company signed a memorandum of understanding to acquire an 85.7% interest in Bon Génie N. Mining (BN Mining) Sarl, which holds an option over the permits with La Societe Miniere de Kilo-Moto SA.
Amani intends to conduct a modern exploratory study and targeting program to determine potential areas for systematic exploration work, it said May 21.
During a 60-day due diligence period, BN Mining will incorporate a new company to hold the Gada project. BN Mining will own 70% and Sokimo will receive 30% of the new company.
If Amani decides to go ahead with the acquisition, it will secure a 85.7% stake in BN Mining, with existing shareholders retaining 14.3%.
The company will be required to issue 30.0 million shares and settle BN Mining's outstanding liabilities of about US$820,000. It will also fund and manage all gold exploration at the project, including a detailed feasibility study within three years, and other operating expenditure such as annual license fees.
Amani will also issue 30.0 million shares to Mark Gasson, who introduced the Gada project.