Under pressure, AJN Resources scraps planned Kibali stake purchase

DRC Gold

02/03/2020 10:54

JOHANNESBURG, March 2 (Reuters) - AJN Resources has scrapped
a plan to purchase a 10% stake in Congo's biggest gold mine from
state-owned gold firm SOKIMO, buckling to pressure from Barrick,
the operator and 45% stakeholder of the Kibali mine which
opposed the deal.
    The Canadian junior miner's shares  AJN.CD  tumbled nearly
50% last week after Reuters reported Barrick  ABX.TO  issued a
cease-and-desist notice to block the Kibali stake purchase.
 urn:newsml:reuters.com:*:nL5N2AS8BD  urn:newsml:reuters.com:*:nL5N2AQ578
    "As a result of its due diligence and further information
received,  AJN  will not proceed with its proposed acquisition
of SOKIMO's 10% free carried interest in the Kibali Gold Mine,"
the company announced in a release late on Sunday. 
    The transaction would have required approval from both
Barrick and Anglogold Ashanti, each of whom own 45% of Kibali. 
    Congolese civil society groups added to the pressure on AJN,
demanding transparency over the deal and asking why SOKIMO's
stake sales were not subject to an open tender. 
    AJN said it was continuing due diligence on other projects
it plans to acquire from SOKIMO (Société Minière de Kilo-Moto),
namely 30% stakes in Zani-Kodo, Nizi, and Kibali South, and 35%
stakes in Giro Goldfields and Wanga (Tendao). 
    AJN Resources' Frankfurt-listed shares  5AT.F  were up 5.1%
by 1026 GMT on Monday after the announcement. 

 (Reporting by Helen Reid; Editing by Kirsten Donovan)
 ((Helen.Reid@thomsonreuters.com; +27 11 595 2852;))