Vector acquires African gold project

Vector Resources has acquired a 60 per cent stake of the Adidi-Kanga gold project in the Democratic Republic of Congo, in a cash-and-scrip deal worth about $14 million.

Under the deal, Subiaco-based Vector will pay Mongbwalu Goldfields Investment Limited $US5 million (approximately $6.93 million) and issue $US5 million shares at a price of 2.2 cents per share.

Adidi-Kanga has a resource estimate of 15 million tonnes at 6.6 grams per tonne of gold for 3.2 million ounces for the life of the mine.

Five grams per tonne is generally considered in the high grade range.

Adidi-Kanga was previously owned by AngloGold Ashanti between 2005 and 2013.

AngloGold had invested $US520 million (approximately $720 million) into the exploration and development of the mine, including the completion of a feasibility study and commencement of initial mine construction, before abruptly ceasing development as part of a company-wide restructure.

In a statement to the ASX, Vector said the prior work on the mine would enable it to complete the definitive feasibility study this year.

The company said it had secured debt funding of $US35 million (approximately $48.5 million), which would provide for completion of the acquisition and the definitive feasibility study.