Shares digital

Natural resources group Central African Mining & Exploration (CFM:AIM) is to hand over $2 million and an extra 10% of a joint venture to Gecamines, Congo’s state-owned mining company. The deal is in response to a review of all mining licences held by Western operators in the African country, which has called for fairer participation by local entities.

Gecamines will now own 30% of the joint venture, whose projects include Mukondo Mountain, a large cobalt mine. The other participant is Prairie, a business controlled by Israeli entrepreneur Dan Gertler and family.

Prairie agreed a deal last month for a 39.9% holding in Camec, in exchange for its 50% stake in the JV. The venture may eventually be floated in London or Canada. The new ownership structures require approval from the Congo government, expected within a month.

Shares says: The Gecamines transaction is a small price for Camec if Mukondo lives up to its hype.

by: Dan Coatsworth