ASX-listed copper and gold focused resource company AusAmerican Mining will acquire a high grade DSO operating mine and a major copper development project from its recent Shenglong transaction.
AusAmerican has entered into a binding term sheet for an exclusive option to acquire a 77.58% interest in Shenglong International Investment, a BVI company that is engaged in exploration and production of copper, lead and zinc in the Republic of Congo.
Shenglong owns 100% of a Congolese company called Societe Lulu De Mine which holds 90% of two Polymetalic exploitation permits titled M’Passa-Moubiri and Mindouli under which rights are granted over a total of 372km2. The exploitation permits are valid until 2036. The other 10% of the projects are owned by the Congolese Government.
“This acquisition, together with discussions on acquisition and development funding represents a transformative milestone for the company,” said AusAmerican executive chairperson Peter Landau.
“Mindouli is a development project with significant exploration and feasibility work undertaken to date and, importantly, a clear path forward to establish the next stage forward for development.”