Manas acquires Tanzania gold project for $4m

JOHANNESBURG (miningweekly.com) – As part of its aim to diversify its gold project portfolio, ASX-listed junior developer Manas Resources has signed a binding heads of agreement (HoA) to acquire the Tanzania-based Victoria gold project from mining entrepreneur Nick Clarke’s Cienega Sarl for $4-million.

The HoA comprised a $200 000 nonrefundable deposit, a $1.8-million cash component, and $2-million in fully paid ordinary Manas shares, at an issue price of A$0.002 a share.

While Manas would undertake capital raising to fund the cash component, the transaction was also conditional on shareholder and regulatory approvals.

The company had committed to raising A$657 000 through a share placement to fund the nonrefundable deposit, the due diligence and the working capital.

The Victoria Lake gold project licences, which spanned 350 km2, were strategically located near several established gold mines in Tanzania’s multimillion-ounce Lake Victoria goldfield.

Manas had conducted preliminary due diligence of the extensive drill-hole database, which indicated potential for significant occurrences of shallow gold mineralisation amenable to openpit extraction with good exploration upside.

The company advised that, while some of the licences were subject to joint venture agreements or pre-existing royalty arrangements, some of the most prospective areas were available on a 100% basis.

“The final number, size and composition of the licence package, and impact on an underlying joint venture, will be evaluated as part of the due diligence process,” said Manas.

Meanwhile, the recent gold price rally and ongoing political stability in Kyrgyzstan prompted a significant increase in interest in the potential of Manas’s Kyrgyzstan-based Shambesai gold project.

As a result, Manas had completed three successful in-country due diligence visits to the site, with another scheduled for early July.

The company was in ongoing discussions with external parties about Shambesai and was confident that a value-generating outcome would be possible in the near term.