Taruga Gold Ltd. agreed to earn a 60% interest in the Mwilu and Kamilombe cobalt-copper projects in the Democratic Republic of the Congo from a consortium.
The consortium includes the government of the Lualaba province and a local construction and development company, Mint-Master.
Taruga will pay US$2.2 million on signing the agreement and completion of due diligence, and has five years to sole fund a bankable feasibility study.
It can then make a pas de porte payment of US$10.0 million for development of each permit, and make a final US$20.0 million payment for each project, where it discovers measured and indicated resources of over 250,000 tonnes of contained cobalt or 1.0 million tonnes of contained copper.
The company will conduct drilling during a six-month due diligence period to understand the mineralized potential of both deposits.
Taruga has also secured a first right of refusal to assess and develop additional cobalt-copper licenses held by the Lualaba government and Mint-Master.
Additionally, the company signed agreements with a local company, Madini Minerals Sarl, to acquire its 70% option on four copper-cobalt licenses for a total of US$117,000 in cash and US$117,000 in shares, and pay a total of US$780,000 to the vendors on completion of due diligence.
Taruga will also sole fund a definitive feasibility study on any tenement where it elects to continue exploration.
To acquire up to a 95% interest in PR12423, the company will pay US$100,000 for the initial 65%, fund a definitive feasibility study and pay US$2.3 million on completion, and pay US$100,000 in two equal annual payments.
Taruga will pay a further US$5.0 million if it discovers a measured and indicated resource of over 250,000 tonnes of contained metal or 1.0 million tonnes of contained copper.
The company has raised A$1.4 million via a placement of 13.5 million shares at 10 Australian cents apiece to fund the proposed acquisition and planned work programs.
Meanwhile, Mark Gasson was appointed an executive director and will be responsible for the company's exploration activities. Jamie Anderson was hired as in-country exploration manager, effective May 1.
