Randgold Resources has signed an agreement with government-owned Société Minière de Kilo-Moto (SOKIMO) and Moku Goldmines to develop the Moku-Beverendi gold project in Congo.
Randgold Resources CEO Mark Bristow said that the company can earn a stake of minimum 51% in the project under the deal by the way of funding as well as by carrying out exploration and completing a pre-feasibility study.
A 20% non-contributing stake in the project would be held by SOKIMO.
The Moku-Beverendi gold mine has exploration permits that are located next to Randgold’s Kibali gold mine, which is partly-owned by AngloGold Ashanti.
The latest addition to Randgold’s portfolio will extend its exploration footprint in Congo to 7,824km².
Meanwhile, the company’s Kibali gold mine in Congo exceeded its target by 7% to contribute 642,720 ounces to the group’s production for 2015.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Bristow said: "Kibali is going to make a major impact on the Congolese economy, as it has already spent more than $1 billion with local service and goods providers, and I believe it will also be the flagship for the development of a major gold mining industry in this country."
"The next two years will be particularly tough, as Kibali continues to ramp up its underground production within the constraints of a lower grade and the consequent need for a higher throughput, and we are therefore forecasting an output of 610,000 ounces for 2016 and 620,000 ounces for 2017."
Image: Randgold’s Kibali gold mine is partly-owned by AngloGold Ashanti. Photo: courtesy of Randgold Resources Limited.