One of the top miners in DRC has achieved a major milestone, achieving a majority interest in a project located southeast of Africa’s largest gold mine.
Central African Gold Inc. (TSX-V: CAGR, OTCQB: NDENF, Forum) made headlines this week on news that it had entered into an agreement to acquire a 60% interest in the
Zani-Kodo gold project.
Payment of the $55 million (USD) for the 60% interest will include cash payments and assumption of third-party liabilities. The transaction remains subject to completion of technical and corporate due diligence, the execution of definitive agreements, required financing, and regulatory approval.
Zani-Kodo is in Northeast DRC, 120km southeast of the Barrick-Anglogold Kibali mine, the largest gold mine in Africa with a reported resource of 22m ozs Au. The Zani-Kodo project is also on a similar mineral system to the Kibali mine. Zani-Kodo has a historic resource of over 2,000,000 ozs Au, a further significant resource that remains to be verified, and substantial upside potential.
Mr. Yves Kabongo, CEO of Central African Gold commented on the acquisition.
“This acquisition is a major milestone and company building event for Central African Gold. It is the culmination of total group effort utilizing all of our extensive local knowledge of business and experience in the DRC, so essential to success in a complex environment.”
Mr. Kevin Torudag stated,
“Zani-Kodo is one of the last remaining drilled out assets in the DRC and retains significant upside potential. For Central African Gold to enter into an agreement to acquire a controlling interest in a project of this size is extremely exciting. We have stayed on course with our previously disclosed objective of pursuing and acquiring significant assets in the DRC and will continue to pursue additional opportunities.”
Central African is a natural resource company focused on the acquisition, exploration, development, and operation of mineral projects in the Democratic Republic of the Congo.
(Central African Gold Inc. stock chart – August 2021 to September 2021. Click to enlarge.)
CAGR stock is up 12.9% this month as the company evaluating the feasibility of implementing a
carbon credit revenue stream on its vast land position in the DRC.
Carbon credits are an ideal solution to address multiple ESG related concerns in the DRC, specifically environmental sustainability, sustainable revenue, and social commitments to domestic employment. Central African Gold is working closely with an internationally recognized leader in the carbon credit accreditation and project engineering space to structure the CAGR Carbon Plan (CAP). Carbon credits should be an additional sustainable revenue center for both Central African Gold and the company's DRC partners.
Beyond the ESG related benefits of the Central African Golds carbon credit initiative, there is an immediate revenue opportunity.
A carbon credit is a tradable permit or certificate that provides the holder of the credit with the right to emit one ton of carbon dioxide or an equivalent of another greenhouse gas and is essentially an offset for industries producing greenhouse gas.
CEO Kabongo, stated,
“Central African Gold through its long and continued involvement in the resource-rich DRC will become an important supplier of battery metals (copper, cobalt, and nickel) to the exploding clean technology sector propelled by the growing wave of electrification and decarbonizing energy systems as alternatives to fossil fuels. As Central African Gold continues to develop its current energy metal initiatives, our carbon credit platform could provide a revenue stream in a relatively short timeframe.
We also consider our ESG obligations to be an important part of our business and a carbon credit solution is an obvious and logical adjunct to our mining development operations.”
Central African Gold closed a private placement initially announced in June. The corporation completed a non-brokered private placement of 12,500,000 units at a price of $0.15 per unit for proceeds of $1,875,000 Each unit includes a two-year warrant with two warrants exercisable into one additional common share at $0.25. The private placement was oversubscribed.
Proceeds will be used for general working capital purposes.
For investors who want to deepen their due diligence on what Central African Gold has to offer their portfolio, visit
centralafricangold.com.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.