Premier African Minerals holds a 4.5% stake in Casa Mining Limited (“CASA"), a private company registered in Mauritius that holds prospective gold mining and exploration licences in the Democratic Republic of Congo ("DRC"). Premier has been granted a pre-emptive right whereby it can maintain a minimum 4.5% of the entire issued share capital of CASA. The pre-emptive right must be exercised within 30 days as of the issuance of any new ordinary shares by CASA on the same terms as all other participants.
Furthermore, Premier have been granted an irrevocable right to acquire a further interest of up to 30% of the total issued share capital in the CASA within 60 days as from the date of this announcement, on terms to be mutually agreed by the parties.
About Casa Mining Limited
CASA is a private Mauritian registered company that is the 71.25% owner and operator of the Misisi Gold Project located in South Kivu, eastern DRC which is approximately 350km south of Bukavu and 180km north of Kalemie.
The CASA licence holdings consist of three contiguous mining licenses covering 133km², issued in March 2015 and valid for 30 years. These licenses, which encompass a 60km strike length of the Tanganyika graben within the Rusizian belt ("Misisi Corridor"), include the Akyanga deposit along with the Lubitchako, Tulongwe, Kilombwe and Mutshobwe prospects (targets).
Over the last six years approximately US$30m was spent by CASA developing these licenses. In addition to the regional geophysical surveys completed over these license areas in 2011, CASA has carried out 19,522m of diamond drilling, 2,720m of reverse circulation drilling and excavated 6,274 line metres of trenches on their respective licenses.
At CASA's most advanced project, the Akyanga deposit, SRK reported a SAMREC compliant Mineral Resource with a US$1,200/oz gold selling price and 0.5 g/t Au cut-off grade optimised pit shell, which comprises a gross Inferred oxide gold Mineral Resource of 5.5 Mt at a grade of 1.5 g/t Au for approximately 272 koz of contained metal. SRK has further reported a gross Inferred transition gold Mineral Resource of 16.2 Mt at a grade of 1.8 g/t Au for approximately 927 koz of contained metal.
MDM Engineering Projects Ltd ("MDM"), in conjunction with SRK Consulting UK Limited ("SRK"), completed a scoping feasibility study for the Akyanga deposit resulting in an ungeared NPV (8%) IRR of US$171m and 35% respectively at a US$1,300/oz gold price. This assumed a contract mining scenario with an initial capital cost estimate of US$87.4m and a total operating cost of US$628/oz.
CASA is currently planning a 5,000 metre drilling program with the aim to validate the 3 million ounce potential of the Akyanga deposit. Subsequent to this exploration program, CASA will issue a revised scoping study for a potentially larger gold mining operation.
Further details on Casa’s activities are available from its website, www.casamining.com