Gold and iron ore explorer Vector Resources’ acquisition of the Maniema gold project follows completion of the transaction announced on 14 September 2016, whereby the company had agreed to acquire African Royalty Company (ARC) rights under an agreement with local Congolese mining and exploration company, WB Kasai Investments Congo (WBK).
In terms of this agreement, Vector Resources would acquire a 70% joint venture interest in the Maniema gold project.
The recent completion of the acquisition follows shareholder approvals, the completion of all legal, financial and technical due diligence, and execution of all joint venture documentation, including the seven granted exploration licenses into the joint venture company.
Vector Resources has further completed the required A$1.65 million capital raising, paid the initial cash consideration for the acquisition and has allotted the shares associated with capital raising and the acquisition on the following basis:
- 1,349,071,146 shares issued under the company’s recently completed non-renounceable pro-rata offer to existing shareholders and placement of shortfall shares;
- 300,928,854 shares issued through the conversion of the interim loan facility that was secured on 31 October 2016;
- 2,000,000,000 shares issued as consideration for the acquisition of the 70% interest in the Maniema gold project; and
- 250,000,000 shares to the company’s advisors for services provided in relation to the acquisition and the capital raising.
In line with the terms of the acquisition, Vector Resources has executed a royalty agreement for the payment of a royalty to WBK and ARC of 1% of gross revenue on all bullion or other mineral sales made by the joint venture.
Vector Resources is also in the process of strengthening its management team capabilities with the appointment of both a CEO to manage the project and planned exploration activities, and a representative of ARC to the board of the company.
Commenting on the completion of the acquisition, chairman of Vector Resources, Gary Castledine, said: “We are pleased that we have been able to move so efficiently to complete the acquisition of our 70% interest in the Maniema gold project.”
“With the acquisition now completed, our shareholders have a majority interest in an advanced gold project, that includes the Kabotshome gold prospect and a further four defined gold prospects within seven exploration licenses located in one of the world’s most highly prospective gold mining regions.”