The Mokabe-Kasiri Cobalt-Copper Project
The Mokabe-Kasiri Cobalt-Copper Project is located in the Congolese part of the prolific Central African Copperbelt. It lies approximately 50 km to the north of one of the world’s largest Copper-Cobalt mines, Tenke Fungurume (Tenke). Tenke is currently owned by a consortium which includes Toronto-based Lundin Mining and Phoenix-based Freeport McMoRan. The large Kamoto Copper-Cobalt Mine in the Kolwezi mining district is operated by a joint venture between Glencore and the state owned GECAMINES and is approximately 110 km southwest from the tenements. The Mokabe Cobalt-Copper Project is well-located relative to infrastructure including roads, power and water.
Tenure and Historical Work
The Mokabe Cobalt-Copper Project comprises of a contiguous land package of 116 square km’s (Figure 1). CoCu is in the process of converting the artisanal exploitation licenses to mining prospecting permits
Artisanal miners extract Copper-Cobalt oxide mineralisation (malachite and heterogenite) at several locations within the property area. During a recent reconnaissance site visit several grab samples were collected. Laboratory results have provided an average grade of Cobalt of between 1.6% and 2.9% and of Copper of 1.3% to 9.2%.
Upon completion & satisfaction of due diligence, Red Mountain has the right, solely at its election, to earn-in to the Project by way of incurring expenditure as follows.
RMX shall issue to CoCu:
- 2 million shares upon RMX exercising its right to earn into the Project and entering into formal joint venture documentation;
- 1 million shares in each instance on election to proceed to Phase 2, Phase 3 and to take out CoCu’s remaining 20% interest (should RMX elect to do so).
Upon RMX earning an 80% interest in the Project, the joint venture will be a customary pro rata contributing arrangement, provided that RMX has the right to acquire the remaining interest in the project for A$3.5m (by mix of cash and shares) and a 1% NSR over the Project.