InvestmentPitch Media Video Discusses AJN Resources' Over-Subscribed Private Placement and MOU for Multiple Gold Projects in Democratic Republic of Congo - Video Available on Investmentpitch.com
Vancouver, British Columbia--(Newsfile Corp. - February 27, 2020) - AJN Resources (CSE: AJN) (FSE: 5AT) has closed its over-subscribed private placement, raising gross proceeds of $2 million from the sale of 5 million shares at $0.40 per share. The shares are trading at $0.77. The company is progressing with its due diligence on the projects covered in the Memorandum of Understanding announced on February 6th.
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Under the terms of the MOU, the company will be working with SOKIMO (Société Minière de Kilo-Moto SA), a Democratic Republic of The Congo state owned parastatal entity, to help them monetize their assets in the public markets in the coming months. SOKIMO proposes to convert its rights to direct participation in various gold licences into shares of AJN Resources. AJN Resources intends to raise a minimum of CDN$20 million and to issue common shares to SOKIMO equal to 60% of issued and outstanding shares of AJN, post financing, subject to legal and technical due diligence and regulatory approval.
Klaus Eckhof, President and CEO, stated: "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 6 gold 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."
Let's look at a few of the properties involved in this transaction. For more detail please refer to the news release.
AJN will acquire SOKIMO's 10% free carried interest in the Kibali Gold Mine, with the remaining 90% held in a joint venture between Barrick Gold Corporation (TSX: ABX) (NYSE: GOLD) (45%) and AngloGold Ashanti Limited (NYSE: AU) (45%).
AJN will acquire 30% of SOKIMO's Zani-Kodo Project located in the eastern part of the Moto-Zani Goldfields in the north-east Congo Craton, host to the Kibali Gold Camp. The main mineralised zone is between 20 meters and 30 meters thick, continues 900 meters down dip and continues some 600 meters along strike to the NNW. Drilling also suggests grade improves with depth with deepest hole reporting 24 meters at 10.08 grams per tonne gold.
AJN will acquire SOKIMO's 35% free carried interest in the Giro Goldfields Project, with the remaining 65% owned by Amani Gold Limited. The project covers 497 square kilometers in the Moto Greenstone Belt and consists of two main deposits.
AJN will acquire SOKIMO's 35% free carried interest in the Wanga Project, with the remaining 65% owned by Wanga Mining Company SARL. Within the Wanga Project area there are numerous sites of historical bedrock and placer gold mining. Many of these locations are now being exploited by local artisanal gold mining activities.
AJN will acquire 30% free carried interest in the Nizi Project from SOKIMO, with the remaining 70% to be owned by SOKIMO. The Nizi Project, formerly known as the King Leopold Gold Mine, is an abandoned underground gold operation with a focus on up to 7 known major quartz gold veins. The mine was developed underground over a strike of some 600m and to a depth of approximately 160m to 180m and operated intermittently for approximately 12 years between 1913 and 1931. Recent grab chip samples reported up to 34 grams per tonne gold from the Nizi Number 1 Vein.
AJN will acquire 30% free carried interest of Kibali South from SOKIMO, with the remaining 70% owned by SOKIMO. The licences are located immediately to the south and adjacent to the Kibali Gold Mine.
AJN also continues to work on its salt wells lithium project in Nevada and will be focusing on doing further work on the claims when weather permits. Further projects are also under consideration and will be announced once secured.
For Investor Relations, contact Sheena Eckhof, Director, at 778-218-9638 or by email at firstname.lastname@example.org.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/52885