KGL Isiro SPRL
KGL Isiro SARL was set up to incorporate the 12 exploration licences (PR’s) previously held by KGL-ERW SPRL (PR2226; PR2229; PR2230; PR2231; PR2285; PR2286; PR2287; PR2288; PR2289; PR2290 and PR2291) and formed part of the Joint Venture (JV) between Rio Tinto and KGL for the development of the prospective iron ore resources associated with these licences. The right to explore for gold on these licences, did not form part of the aforesaid JV agreement.
The KGL Isiro licences cover an area of approximately 2058 km2 of the Isiro and Ngayu Greenstone belts and examination of available data to date, has enabled preliminary interpretation of major structural features permissive for gold mineralization, such as local and regional folding, thrusting, faulting and displacements and structural directional changes, see figures below.
On December 6 2012, KGL and Randgold Resources Ltd (“RRL”) announced that they have signed a definitive agreement for a Joint Venture (“JV”) pertaining to KGL’s KWR-Iron Sprl (KWR) Exploration licences in the Democratic Republic of Congo (“DRC”). This agreement covers all commodities covered in the Exploration Licence, except iron ore.
RRL undertake to finance all exploration activities on the KGL Isiro SARL licences, for which RRL will obtain incremental ownership based on milestone events. RRL has from the date of signing, up to five years to develop a pre-feasibility study (PFS) and a joint venture committee comprising members of both companies, will manage the exploration and study development programmes.
The terms of the agreement are:
- RRL to earn 51% for the completion of a pre-feasibility study (“PFS”)
- KGL right to maintain 49% post PFS
- RRL to earn 65% for the completion of a bankable feasibility study (“BFS”) should KGL not contribute post PFS
- KGL equity to convert to 1.5% royalty if diluted to 10% or less
- KGL keeps the exploration rights to all minerals not associated with gold
- PFS to be established within 5 years
- BFS to be established within 1 year after PFS, or such longer time to be agreed by the parties
About RandGold Resources Ltd (RRL)
RRL is a gold exploration and mining company operating in the prospective gold belts of west and central Africa. The company’s strategy is to create real value for all its stakeholders through organic growth (exploration) and the development of multi Moz discoveries into profitable operating mines. Major discoveries to date include:
- the 7.5 Moz Morila deposit in southern Mali;
- the 7 Moz Yalea deposit and the 5.5 Moz Gounkoto deposits in western Mali;
- the 4 Moz Tongon deposit in the Cote d’Ivoire; and
- the 3 Moz Massawa deposit in eastern Senegal.
Today RRL operates four gold mines: Morila; Loulo and Gounkoto in Mali and Tongon in Cote d’Ivoire. A fifth mine, Kibali in the Democratic Republic of Congo, is currently being developed and first gold production is scheduled for the end of 2013. The Massawa project in Senegal is at feasibility stage and exploration programmes are under way in Burkina Faso, Cote d’Ivoire, DRC, Mali and Senegal.
|KGL Isiro an iron ore resource of regional or global significance?|
Related Press Releases
2012-12-10, KGL & Randgold Resources explain their new DRC JV (GoldInvest.de) (Audio & Video)