Rome Resources finalises agreements to acquire two mineral properties in DRC

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Rome Resources Ltd. (RMR) is pleased to announce that it finalised definitive option agreements to acquire majority interests in two properties situated in the Walikale District of the North Kivu Province in eastern Democratic Republic of the Congo (“DRC”). The two contiguous properties are referred to collectively as the “Bisie North Tin Project”.

The Company previously announced, it had reached agreement in principle to acquire a majority interest in the Bisie North Tin Project.  The Bisie North Tin Project comprises two adjoining licences covering a total area of 38.4 km².

Exploration Licence PR 13274 covers an area of 30.7 km² and is in the process of being converted into small scale mining permit PEPM 13274. Exploration Licence PR 15130 covers an area of 7.7 km², and its west and south boundaries adjoin PR 13274. The Bisie North Tin Project adjoins the northern boundary of the tenements held by Alphamin Resources Corp. (“Alphamin”). Alphamin’s Mpama North Mine is situated approximately 8 km south of the boundary of the Bisie North Tin Project.

Exploration Permit PR 13274

The Company has entered into an option agreement with Dr Andreas Reitmeier and Medidoc-RD Congo SARLU (“MRDC”) pursuant to which the Company can acquire up to a 71% interest in the issued and outstanding shares in MRDC on the following terms:

  • The Company can acquire a 30% interest in MRDC by issuing a total of 9,000,000 RMR shares to Dr Reitmeier and his associates, and by funding exploration and development expenditures at PR 13274 totalling CAD$250,000 on or before 31 January 2023 (“MRDC First Option”).
  • The Company can acquire a further 41% interest in MRDC (for a total interest of 71%) by issuing a further 30,000,000 RMR shares to Dr Reitmeier and his associates, and by funding additional exploration and development expenditures at PR 13274 totalling CAD$1,750,000 (for a total of CAD$2,000,000) on or before 31 January 2024 (“MRDC Second Option”).

The option agreement may be terminated by Dr Reitmeier if TSX Venture Exchange or NEX acceptance for filing of the agreement is not received by September 2, 2022. MRDC holds a 72.5% interest in PR 13274 (converting to PEPM 13274). The remaining 27.5% interest is held by Investissement et de Developpement Immobilier S.A.R.L (“IDI”). MRDC and IDI operate the permit under a joint venture agreement. MRDC is the operator of the joint venture. The Company will be responsible for funding exploration and development expenditures at PR 13274.

MRDC was incorporated in the DRC in 2021 for the purpose of mineral exploration in the DRC. MRDC’s only activities since incorporation have been acquiring an interest in and funding exploration of PR 13274.

The Company has previously advanced a total of US$400,000 to MRDC to assist with on-going costs associated with the maintenance of PR 13174. Under the agreement, the Company has agreed to fund up to a further CAD$250,000 for exploration and development expenditures. The further CAD$250,000 advance is subject to TSX Venture Exchange approval and all advances will be treated as loans to MRDC. After the exercise of the MRDC First Option, such advances will then be immediately attributed to the CAD $1,750,000 to be incurred in exploration & development expenditures pursuant to the MRDC Second Option and will be deemed to be repaid.

The Company has entered into a secured exploration loan agreement dated August 15, 2022 with MRDC, which sets out the terms of the proposed further CAD$250,000 advance to MRDC and provides that the previously advanced US$400,000 and the proposed CAD$250,000 advance are repayable on July 31, 2024.

As previously announced, MRDC advises that exploration to date at PR 13274 includes a soil sampling and geological mapping program with channel samples collected across mineralized structures currently being mined by artisanal miners. Soil samples were collected on lines 400m apart across the whole of PR 13274 and infill samples were collected on lines 200m apart over anomalous areas. The assay results returned a significant continuous tin-in-soil anomaly with gold, copper and zinc credits over a 4 kilometre strike length. The channel sample results reportedly returned tin values up to 1m at 11% Sn.

Exploration Permit PR 15130

The Company has also entered into an option agreement with CoTinCo Minerals Projects International LLC (“CTC”) pursuant to which the Company can acquire up to a 51% interest in PR 15130 on the following terms:

  • The Company can acquire a 25% interest in PR 15130 by issuing 3,000,000 RMR shares to CTC’s nominees, which are Dr Reitmeier and his associates, and by funding exploration expenditures at PR 15130 totalling CAD$250,000 on or before 31 January 2023 (“CTC First Option”).
  • The Company can acquire a further 26% interest in PR 15130 (for a total interest of 51%) by issuing a further 6,000,000 RMR shares to Dr Reitmeier and his associates, and by funding additional exploration expenditures at PR 15130 totalling CAD$1,750,000 (for a total of CAD$2,000,000) on or before 31 January 2024 (“CTC Second Option”).

The option agreement may be terminated by CTC if TSX Venture Exchange or NEX acceptance for filing of the agreement is not received by September 2, 2022.

CTC currently holds a 70% interest in PR 15130, with the remaining 30% interest held by Palm Constellation S.A.R.L. (“Palm”). CTC and Palm operate PR 15130 under a joint venture agreement. CTC is the operator of the joint venture. Upon exercise of the CTC Second Option the interests of the joint venture in PR 15130 would be: the Company 51%, CTC 29% and Palm 30%. The Company will be responsible for funding exploration and development expenditures at PR 15130.

Closing Conditions; Application for Reinstatement

Closing of both transactions is subject to disinterested shareholder approval and TSX Venture Exchange acceptance for filing. The Company anticipates concurrent closings for the two transactions. The transactions constitute an Arm’s Length Transaction for the purposes of TSXV policies. A sponsor has not been retained in connection with the transactions. The Company will apply for reinstatement on the TSX Venture Exchange upon closing of the transactions.

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