African Energy Metals acquiring 60% of DRC project, Africa
African Energy Metals Inc. [CUCO-TSXV; NDENF-OTCQB; BC21-FSE; A3DEJ-WKN] has acquired an additional 200 km2 of concessions in the South Kivu region of the Democratic Republic of the Congo, with high prospectivity for cassiterite (tin), tungsten, coltan, lithium, beryllium, gold and rare earths. The Kivu region is the same district as the world-class Aphamin tin mine.
African Energy entered into an assignment agreement with AuClair ECC SASU, pursuant to which AuClair has assigned to African Energy Metals 100% of AuClair’s interest in an agreement with Amur Sarl to enter a 60/40 joint venture on the project with Amur.
The project is held 100% by Compagnie Miniere de Kalehe SA (CMK SA), which is a joint venture between Amur and Societe Aurifere Du Kivu et du Maniema SA (Sakima). The company would acquire a 60%t interest in CMK. The shareholders of Amur, CMK, Sakima and AuClair are arm’s length to the company.
In consideration of the assignment, African Energy Metals will assume all rights and obligations under the joint venture, and issue three million common shares of African Energy Metals as directed by AuClair. The agreement with Amur is structured as an exclusive agreement to be converted into a formal joint venture agreement during the 180-day due diligence period. African Energy Metals will pay US$150,000 to Amur upon successful completion of due diligence and execution of formal agreements.
The company will pay a finder’s fee in common shares to arm’s-length parties. The closing of the transaction is subject to completion of a satisfactory due diligence review by African Energy Metals, other industry standard conditions and regulatory approvals including the TSX Venture Exchange.
The company also announces the grant of 250,000 incentive stock options to certain of its directors, officers, consultants and employees pursuant to the company’s stock option plan. The options are exercisable for a period of five years at a price of 7.5 cents per share.
African Energy Metals is a natural resource company with a focus on the acquisition, exploration, development and operation of copper, cobalt and lithium energy metals projects in the DRC.