Amani Gold Ltd. signed a memorandum of understanding to acquire the Gada gold project in Democratic Republic of Congo from La Societe Miniere de Kilo-Moto SA, or SOKIMO.
The project comprises six tenements covering a total of 1,831 square kilometers, according to an Aug. 19 release.
The agreement will be through a corporate vehicle managed by both companies, with Amani holding 70% and SOKIMO holding the remaining 30%. Amani will fund exploration work and costs until it provides a bankable feasibility study.
Amani agreed to settle outstanding surface rights payments of about US$315,000 due to DRC Cadastre Minier and to pay SOKIMO US$300,000 for exploration data, the rights to explore, prospecting authorizations and administrative expenses
The company intends to conduct exploration on the tenements to determine potential target areas for systematic exploration work.
The original memorandum Amani signed with Bon Génie N. Mining (BN Mining) SARL was terminated after due diligence inquiries.