The government of the Democratic Republic of Congo (DRC) has officially verified a Memorandum of Understanding (MoU) between CSE-listed AJN Resources and local company Société Minière de Kilo-Moto SA (SOKIMO).

DRC – According to the MoU, signed in February this year, SOKIMO proposes to obtain from AJN the conversion of its rights to a direct participation in various gold licences held by SOKIMO into shares in AJN. The gold licences are located within the Kilo-Moto gold province in the north-east of the Democratic Republic of Congo.

The gold licence numbers and equity interests to be secured include: Zani-Kodo, Giro Goldfields, Wanga (Tendao), Nizi and Kibali South. AJN intends to raise a minimum of C$20 million via the issuance of securities in the capital of the company.

Read: DRC still an important mining player in the region

[subhead] Proven track record in the country

AJN is a junior exploration company. The management and directors possess over 75 years of collective industry experience and have been very successful from exploration, to financing, to developing major mines throughout the world with a focus on Africa and especially the DRC.

CEO and President of AJN, Klaus Eckhof,  commented, “With our management’s track record in the DRC, we believe that we are close to delivering a portfolio of gold projects which underpin the making of a significant new gold player in DRC. We believe that not only do the projects contain excellent potential for further gold mineralisation, they also have the potential to alleviate poverty in the area though job creation within the local community.

“We note that the adjacent Kibali gold project employs 1 400 DRC nationals and 2 800 DRC contractors and that $38 million was spent on local contractors during Q1 2019.”