Proactive Investors - Run By Investors For Investors

Randgold and AngloGold snatch up additional 20% in Moto Gold Project

Randgold and AngloGold snatch up additional 20% in Moto Gold Project

International Gold miner Randgold Resources (LSE: RRS, NYSE:GOLD) says it will move quickly to fill in the gaps in the feasibility study on the newly renamed Kibali (Moto Gold) project and to bring the mine into production as soon as possible. Randgold closed the acquisition of Moto Goldmines earlier this month.

Joint venture partners Randgold and AngloGold Ashanti have increased their stake in the Kimbali project after agreeing to purchase an additional 20% for $113.6m , once the transaction is complete the will each hold 45% of the project with the Congolese parastatal company OKIMO retaining 10%.

Kibali is one of the largest undeveloped gold deposits in Africa. The feasibility study completed by Moto in March this year envisages an open pit and underground operation with probable mineral reserves of 5.5 million ounces and is expected to produce some 2.4 million ounces of gold in its first five years of production. 

Kibali also has indicated mineral resources of 11.3m ounces and inferred mineral resources of 11.2m ounces.

The Randgold capital projects team responsible for the development of Kibali, has extensive experience on similar project, the team successfully built the Morila and Loulo mines in Mali and is currently developing the Tongon mine in Côte d'Ivoire.

Randgold Chief executive Mark Bristow commented on the progression of the newly renamed Kibali gold project since Randgold acquired the property.

"Our negotiations with the government regarding the acquisition of Moto and then the purchase of an additional stake in Kibali have been inclusive and productive, and in the process we've developed a good working relationship with OKIMO and the regulatory authorities. With all the negotiations now successfully concluded, we can get on with the job of building the mine,"

The company intends to announce a definitive timeline for the development of the project by January 2010, when it will have completed its update of the geological model.

Register here to be notified of future RRS Company articles
View full RRS profile

Randgold Resources Timeline

January 15 2015
December 28 2014

Related Articles

June 22 2015
The Rio Tinto deal looks transformational for Savannah. In fact it changes the way juniors and majors interact.
March 12 2015

Timber land management business Kishugu International Holdings has been chosen as Obtala's partner for its forestry projects in Mozambique, while the pair are also forming a joint venture to pitch for a forestry contract in Brazil.

November 19 2015
The standout number is the one that underpins that market capitalisation – the amount of money Gold Resource Corp has returned to shareholders since it went into production at the Arista mine back in 2010.

© Proactive Investors 2015

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.