Rackla to acquire 3Moz gold project in DRC for $4M
(Kitco News) - Rackla Metals (TSXV-RAK) announced today that it has entered into an agreement to acquire a 73.5% interest in the Misisi gold project located in the Democratic Republic of the Congo ("DRC").
The company said that the project is comprised of three contiguous mining leases, valid until 2045, covering 133 square kilometres and includes the Akyanga deposit which hosts an Inferred Resource of 3.1 million ounces of gold averaging 2.16 grams per tonne gold.
The project has been explored by a number of companies intermittently since the late 1920's. Recently, exploration was carried out by Anvil Mining (acquired by Minmetals Resources/MMG in 2011 for C$1.3 billion) from 1998 through 2008, followed by Casa Mining from 2011 onwards.
The company said it sees significant exploration potential with 55 km of prospective gold belt, of which numerous additional targets have been identified from prior exploration (geophysics, sampling and prospecting).
Under the terms of the Casa Mining SPA, Golden Mining is acquiring the outstanding shares of Casa Mining for total cash consideration of US$4.8 million in staged cash payments. Under the definitive agreement, Rackla will acquire Golden Mining through the issuance of up to 11.0 million common shares of Rackla at a deemed price per share of $0.40 and will assume the obligation to make the required payments under the Casa Mining SPA.
"We are very excited to acquire such a high-quality gold asset located within a prolific mineral belt", commented CEO Simon Ridgway. "The expansive 133 square-kilometre property, which encompasses a 55-kilometre gold belt, is already host to a significant multi-million-ounce resource which we feel has tremendous potential for future growth. The mineral endowment of the DRC coupled with intermittent capital investment and exploration over the past century, makes the country one of the last frontiers for the discovery of truly world-class deposits."