AJN Resources Inc (CSE:AJN) announced that it has signed an agreement with Lord Purus Trading Limited (LPT) to acquire up to a 70% interest in the Dabel Gold project, located in Marsabit County in northern Kenya.
The project is situated within the Adola Gold Belt, approximately 50 km southeast of Moyale, and is close to the 4.5-million-ounce Lega Dembi gold mine in Ethiopia, highlighting its potential for significant mineralization.
The Dabel area has been extensively mined by artisanal miners, who reportedly produced around 3,500 kilograms of gold between 2021 and early 2023.
The site features various hard rock and alluvial workings, suggesting the presence of substantial mineralized structures.
AJN said that it plans to commence detailed channel sampling and mapping, along with soil geochemical programs, to identify gold sources and prepare for drilling.
"We are extremely excited about the acquisition of the Dabel Gold Project, which has been subjected to extensive artisanal mining and which has highlighted the potential of the area,” commented Klaus Eckhof, AJN CEO.
“The company now has a great opportunity to uncover the true potential through systematic exploration of the area, which lies on trend, within the same host rocks and only 250km from the Lega Dembi 4.5 million ounce gold mine in neighbouring Ethiopia to the north.
“We look forward to fast-tracking a drilling programme in coming months to unleash the true potential of the area."
Per the terms of the agreement, AJN will issue 5 million shares to LPT, and conduct a 90-day due diligence period that includes a minimum of 1,000 meters of drilling.
Should AJN wish to continue following the conclusion of the due diligence, it will make several payments totaling $1 million to gain a 60% stake in the project.
Additionally, AJN is committed to funding all exploration efforts and maintaining necessary permits until a Bankable Feasibility Study is completed within five years.
AJN can acquire an additional 10% interest, bringing its stake in the project by paying $10 million to LPT or its nominee within two years from the commencement dates or $15 million within three years from the commencement date.