Vector Resources Ltd. is working toward entering joint ventures for development of the Kibali South and Nizi gold projects in the Democratic Republic of the Congo.
The company signed the agreements with Société Minière de Kilo Moto, or SOKIMO, and will now complete due diligence within 90 days and finalize the key terms.
Vector will hold between a 60% interest and a 70% interest in the projects and will act as the operator and manager of the new joint venture. The joint venture intends to commit to a development decision for a standalone gold mining operation within two years.
The company will initially pay US$350,000 and make payments, in cash or shares, of about US$7.50 per JORC-defined resource ounce. SOKIMO will also receive a 1.5% royalty on gross sales of gold from the start of production, according to the Dec. 7 release.
Vector will fund all of the costs to complete the preliminary and definitive feasibility studies and look for funding to complete the mine development.
Meanwhile, the company has received firm commitments to raise A$3.2 million via a private placement of 180.0 million common shares at 1.8 Australian cents apiece. The proceeds will be used to fund the up-front costs of the SOKIMO agreements.