ASX-listed gold and iron ore focused junior Vector Resources has completed all due diligence for the acquisition; the preparation of joint venture documentation is advanced, the incorporation of its in-country subsidiary and joint venture is substantially completed and the transfer of the seven granted exploration licences in the joint venture company is underway.
With the acquisition of the project approved by its shareholders, Vector Resources will now proceed with the entitlement issue to shareholders to finalise its $1 650 000 capital raising, with a non-renounceable pro-rata entitlement issue of one new share for every one share held by eligible shareholders at a price of $0.001 per share, in addition to the already completed $300,000 interim debt facility.
Chairman Gary Castledine said: “Shareholder approval is a major milestone in the company’s proposed acquisition of Maniema and represents a significant vote of confidence in the corporate growth strategy of Vector. Vector will now rapidly move to complete the necessary documentation to complete the acquisition and finalise the entitlement issue.”
The Maniema gold project is located in the Maniema Province, approximately 160 km south of the provincial capital Kindu, in east-central DRC. The project comprises seven granted exploration licences which contain five main prospects that have been defined within the project area by previous exploration. The Kabotshome project is the most advanced.
Exploration of Maniema includes geophysics, stream sediment sampling, soil geochemistry, trenching and drilling. Five different prospects were identified from soil sampling, and four of these were then trenched to better define drill targets. Drilling was carried out on the Kabotshome, Mitunda and Mbutu prospects.
The Kabotshome project was an alluvial gold mine operated by the Belgians until the 1960s and today is still actively worked by artisanal miners. A total of 17 holes (including 3 re-drills), were drilled along the main target in Kabotshome. All drill holes intersected gold mineralisation along the Kabotshome structure, which was exposed over 800 m from trenching. This mineralisation was generally 15 m to 25 m wide with a grade range of 1.5 to 2.5 g/t.