Red Rock Resources plc announced a new cobalt joint venture (JV) in Haut-Katanga, the Democratic Republic of Congo (DRC).
JOINT VENTURE
The company’s subsidiary Red Rock Resources Congo SAU (RRRC) entered into an agreement with the Société d’Investissement Minier Akon et Sodimico S.A. (Simaks).
The deal will see Red Rock acquire 58% in the Kimono cobalt-copper project in Haut-Katanga province of the DRC.
SIMAKS
Simaks is a JV company between Whitewater LLC of Sheridan, Wyoming (70%) and La Société de Développement Industriel et Minier du Congo (SODIMICO) (30%).
Red Rock said that SODIMICO is a parastatal mining company of the DRC and owns 20 carrés (17km2) of mining licence PE102 containing the project.
White Waterfall LLC is a private equity fund controlled by the American-Senegalese businessman and musician Aliaune Thiam.
TRANSACTION
Red Rock has paid $50,000 for 58% of the project, with further payments of $25,000 per quarter for a total $400,000.
The company will appoint the operations manager and the lead geologist.
KOMINO
Red Rock said that the Komino project had a history of limited scale, high grade, cobalt production.
A total of 11 grab samples tested by XRF indicated cobalt grades of 0.63% to 1.8%.
CO-OPERATION
Chairman Andrew Bell said the company had conducted technical and legal due diligence, sampling and mapping before signing the transaction.
“We are delighted to have been able to arrive at acceptable terms for entry into this exciting and historically very high grade cobalt project.
“We look forward to working in close co-operation with Simaks to advance the project, beginning with geochemistry including termite mound sampling over a wide area, and leading up to scout drilling of specific targets.”