London, England — MININGREVIEW.COM — 21 October 2009 – International gold mining and exploration company Randgold Resources Limited plans to move swiftly towards a bankable feasibility study on the Moto gold project in the Democratic Republic of Congo (DRC), following the completion of its business combination transaction with Moto Goldmines Limited.
Moto shareholders earlier voted in favour of the deal in terms of which they would exchange their Moto shares for Randgold shares or cash. Simultaneously, AngloGold Ashanti has acquired a 50% indirect interest in Moto for cash, and Randgold and AngloGold will be jointly responsible for developing the Moto project, which will be operated by Randgold.
The Moto gold project is one of the largest undeveloped gold deposits in Africa. A feasibility study completed by Moto in March 2009 envisaged an open pit and underground mining operation with probable mineral reserves of 5.5 million ounces which wass planned to produce some 2.4 million ounces of gold in its first five years.
“The Moto deal essentially represents the acquisition of an opportunity to convert a very big, if technically challenging, gold deposit into a profitable mine,” said Randgold chief executive Mark Bristow. “This is in line with our growth strategy of creating value by developing discoveries, rather than paying a premium for established operations. It marks our expansion into a new and exciting gold belt, while retaining our African focus.”
Meanwhile Randgold has signed a definitive agreement with Volta Resources Incorporated to sell its entire interest in the Kiaka gold project in Burkina Faso to Volta for an aggregate cash consideration of US$4 million and an aggregate share consideration of 20 million common shares in Volta, to be paid and issued over a period of 24 months.
Toronto-based and TSX-listed Volta is a mineral exploration company with a strong focus on gold properties in West Africa, where it has active programmes in Burkina Faso, Ghana and Mali.
The transaction will be conditional upon the approval of Volta shareholders and the Toronto Stock Exchange, which are expected to be received in the first half of November.