Banro Corporation has entered a definitive agreement to sell its Namoya Mining SA operating mine to a consortium of investors that includes Baiyin International Investment and Shomka Resources.
This follows the sale of its Namoya mine, in January, also to Baiyin International.
In exchange, Banro will receive a perpetual royalty for all production from the Namoya property, located in the Democratic Republic of Congo (DRC).
The transaction is still subject to certain conditions, including final approval from the DRC government.
The buyer will assume management control of the company with immediate effect, and planning will commence immediately in an effort to re-start the mining operations as soon as possible.
Banro Corporation, since its entry into the DRC in 1996, has had to halt its operations several times, first when its mining licences were revoked during the civil war in 2001 and again after being subject to repeated attacks from armed rebels between 2016 and 2018.
Following a business restructuring process in 2018, the company actioned a turnaround plan at the cash-strapped operations to recapitalise the business and address the safety risks but has since struggled to overcome the unstable operating environment within the country.
After the sale of Namoya, Banro will still hold two mining licences – Lugushwa and Kamituga , as well as 17 exploration properties in the DRC.