Vector Resources Ltd (ASX:VEC) has entered into an agreement to acquire a 70% interest in the Maniema Gold Project located in the Democratic Republic of Congo.
The Maniema Gold Project comprises seven granted exploration licenses which extend over an area in excess of 500 square kilometres of prospective ground.
The project is situated near Randgold Resources Ltd (LON:RRS) and AngloGold Ashanti Ltd’s (JSE:ANG) Kibali Gold Mine in the Kilo-Moto belt to the north.
Historical exploration including geophysics, soil sampling, trenching and drilling as well as historical mining and artisanal workings have identified five mineralised prospects at Maniema.
The most advanced prospect is Kabotshome, an alluvial mine site operated by the Belgians until the 1960’s and still actively exploited by artisanal miners.
Total of 17 diamond drill holes were drilled at Kabotshome in 2013, identifying over 800 metres strike length of gold mineralisation with grades of 1.5 to 2.5g/t gold, 15 to 25 metres wide.
Vector has determined an initial exploration target for Kabotshome of between 423,000 contained ounces of gold at 1.9 g/t gold and 603,000 contained ounces of gold at 2.5 g/t gold.
The total consideration for the transaction, if a decision to develop the project is taken, will be $950,000 in cash and 2 billion shares of Vector, plus additional royalty payments.
Vector will proceed with a $1.65 million rights Issue and share placement, to fund the acquisition and planned exploration activities at the Maniema Gold Project over the next 12 months.
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