Amani Gold Ltd. said Dec. 5 that Luck Winner Investment Ltd. terminated a subscription agreement that was part of a binding deal signed in early July under which Luck Winner could have acquired a 28% interest in the company for A$25 million.
Amani Gold subsidiary Amani Consulting SARL failed to secure a two-year extension for the completion of a feasibility study on the Giro gold project in the Democratic Republic of the Congo from its partner on the project, DRC state-owned Societe Minere de Kilo-Moto SA, or Sokimo.
As a result, the subscription agreement and a second tranche of A$10 million were not completed.
"The Amani Group continues to be constructively engaged with Sokimo about the extension to the preparation of a feasibility study," Amani Gold Chairman Yu Quimin said. "We believe that this issue can be settled within a few weeks."
The chairman said that despite Luck Winner's withdrawal from the second tranche of investment, Amani Gold has enough funding for current exploration and expects to raise the necessary funds for feasibility studies.
Amani Gold has completed approximately 4,000 meters of reverse circulation drilling on the Douze Match target over the past three months, and another 1,000-meter campaign is about to start.
