- Gold mining giant, Barrick Gold Corp. (TSX:ABX) will stop AVJ Resources (CSE:AJN) from acquiring 10 per cent of the Kibali Gold mine
- AVJ Resources plans to acquire a number of Kibali gold licences from the Congolese parastatal Société Minière de Kilo-Moto SA (SOKIMO)
- Barrick Gold Corp. currently owns a 45 per cent in the Kibali mine
- Barrick claims the equivalent 10 per cent interest cannot be sold or transferred without approval and plans to block the deal
- AVJ Resources (AJN) was down 5.88 per cent with shares currently selling for C$0.80
- Barrick Gold Corp. (ABX) was down 0.36 per cent, with shares currently trading for C$27.69
Mining behemoth, Barrick Gold (TSX:ABX), plans to bar AVJ Resources (CSE:AJN) from acquiring 10 per cent of the Kibali gold mine.
Barrick currently owns a 45 per cent interest in the Congolese mine. Barrick’s joint venture partner AngloGold holds another 45 per cent.
The final 10 per cent is owned by the Congolese parastatal Société Minière de Kilo-Moto SA (SOKIMO).
AVJ Resources announced on February 6th, that it signed a memorandum of understanding with SOKIMO to acquire a number of Congolese gold licences, including the 10 percent interest in Kibali.
The deal is valued at C$20 million.
AVJ Resources is a relatively small exploration and development company. AVJ’s shares shot up over 200 per cent when licence deal was initially announced.
Barrick claims that SOKIMO cannot sell or transfer its interest in the Kibali mine without its approval and the approval of AngloGold.
According to Barrick no such approval has been sought.
Both Barrick and AngloGold plan to deny any attempt to transfer the licences.
Neither SOKIMO nor AVJ resources have yet released a response. The future of the deal remains uncertain.
Barrick Gold Corp. (ABX) was down 0.36 per cent, with shares currently trading for C$27.69.
AVJ Resources (AJN) was also down 5.88 per cent with shares currently selling for C$0.80.