Canadian junior AJN Resources (TSX-V: AJN) has dropped plans to acquire 10% of Kibali gold mine in the Democratic Republic of Congo from state-owned Société Minière de Kilo-Moto (SOKIMO), after facing stern opposition from Barrick Gold (TSX: ABX) (NYSE: GOLD), the mine’s the operator.
The world’s second-largest gold miner and AngloGold Ashanti, which each own 45% of Kibali, said SOKIMO had not consulted nor informed them about the transaction even though it’s contractually bound to do so.
Canadian junior is continuing due diligence on other projects it plans to acquire from SOKIMO, including 30% stakes in Zani-Kodo, Nizi and Kibali South.
Las week, Barrick sent AJN a cease-and-desist notice to block the planned purchase of the interest in Congo’s biggest gold mine.
“As a result of its due
diligence and further information received, will not proceed with its proposed
acquisition,” AJL said in a release late on Sunday.
The explorer noted it was
continuing due diligence on other projects it plans to acquire from SOKIMO,
namely 30% stakes in Zani-Kodo, Nizi, and Kibali South, and 35% stakes in Giro Goldfields
and Wanga (Tendao).
Already one of the world’s most
highly automated underground gold mines, Kibali continues its technological
advance with the introduction of truck and drill training simulators and the
integration of systems for staff safety tracking and ventilation demand
control.
The simulators, Barrick said in January, will also be used to train
operators at the company’s Tanzania mines.