Gold explorer Amani Gold has been unable to complete a feasibility study at its Giro gold project in the DRC. This has seen an investor terminate funding.Amani Gold’s DRC subsidiary, Amani Consulting SARL, has not be able to procure a two-year extension from DRC state-owned entity, Societe Minere de Kilo-Moto sa (Sokimo) for the preparation of a feasibility study at the Giro gold project by the end date of 30 November 2017 - as required under the terms of a subscription agreement with Luck Winner Investment.
As a result, Luck Winner Investment has given written notice to Amani Gold terminating the subscription agreement between the two parties.
Completion of the subscription agreement and the 2nd tranche investment of $10 million by Luck Winner in Amani Gold’s issued capital was subject to satisfaction or waiver of a condition precedent by close of business on 30 November 2017, being an extension to the date for completion of a feasibility study at the Giro gold project.
“The Amani Group continues to be constructively engaged with Sokimo about the extension to the preparation of a feasibility study. We believe that this issue can be settled within a few weeks. Despite Luck Winner’s withdrawal from its second tranche, the company is adequately funded with respect to its current exploration programmes and I am confident that further funds can be raised as necessary to complete the feasibility studies,” says Chairman Mr. Yu Qiumin.
Approximately 4 000 m of RC drilling has been completed so far at Douze Match in the previous three months, and a further 1 000 m drilling programme is about to begin there. It is expected that most of the results of this phase of RC drilling will be received by mid-December 2017.
Feature image credit: Amani Gold