Africo Resources reported results from a drilling programme undertaken on its Kalukundi Project in the Katanga Province of the Southern DRC. A programme of infill drilling was focused on establishing the continuity in depth of mineralisation on the Principal Fragment and to determine the potential for mineralisation of the SE Anticline Fragment. The best intersection from BH K107 grades at 7.75% Cu and 2.68% Cobalt over a drilled width of 32.88m (true width 30.00m). This intersection runs from 157.00m to 189.88m and has established that oxide mineralisation on this fragment can be confirmed to a vertical depth of 140m. Assay results from the drilling on the SE Anticline Fragment have been received and are very encouraging, particularly in respect of cobalt values, with the best intersection grading at 1.47% Cobalt over a drilled width of 28.86m (true width 25.00m).
Africo Resources announced that, following the conclusion of the mining review, it has reached agreement with La Générale des Carrières et des Mines and the Government of the Democratic Republic of Congo on the amended terms governing the Kalukundi property. The Kalukundi property is located in the Katanga Province in the southeast of the DRC. The mineral rights to Kalukundi are held by Swanmines Sprl. in which Africo holds a 75% interest and Gécamines, the remaining 25%. Tony Harwood, President and Chief Executive Officer of Africo, commented, "With the favourable conclusion of the mining review we can pursue corporate financing and development that will benefit all stakeholders. We anticipate the mining ministry's support as we maintain Kalukundi and its community programs, pending improved market conditions".
Africo Resources completed a Can$100 million private placement at a price of $2,50 per unit with Camrose Resources Limited to develop the Kalukundi project and re-establish its ownership of Swanmines. Each unit consists of a common share and one-half of a share purchase warrant. Each whole warrant will entitle Camrose to acquire an additional common share at a price of $3.50 per share until January 24, 2010.
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