Amani Gold Ltd (fka BRYYF)

[cableguy]

Giro is the Lucky Winner for Amani Gold

A capital injection of $US25
million could help Klaus
Eckhof realise his ambition of
defining the next Kibali.
Eckhof's Amani Gold Ltd
(formerly Burey Gold) has
entered into a non-binding
Moll with Hong Kong's Luck
Winner Investment Ltd to
raise the capital required to
kick-start the Giro gold project in the DRC.
The capital raising comprises the issue of 500 million shares at 5c/share, with
additional free-attaching
options of 250 million at 7c/
share with a term of two
years from the issue date.
Once completed, Luck
Winner will hold about 28%
of issued shares in Amani
and become the company's
cornerstone investor.
Amani chairman Eckhof told Paydirt
the capital raising would put the company in a strong position to take the project
towards an initial PFS and measured resource.
"[Luck Winner] were pretty keen on
production, so they want to do a big infill
drilling programme after the maiden resource and get it up to a measured resource fairly quickly," Eckhof said.
"We are trying to get the resource up
to 4-5 moz hopefully,
that's basically the target. With the backing of
the Chinese, we can be
fairly aggressive.
"[Luck Winner] were
looking for a $US100
million investment,
which I couldn't really
do. We agreed on a
$US25 million investment initially and they
will potentially look to
finance or actually buy
the plant themselves.
They certainly have a
fast-tracked vision there at the moment.
The exploration programme will also be
aggressive."
Giro is only 30km away from the 17
moz Kibali gold mine - the Randgold
Resources Ltd/AngloGold Ashanti Ltd JV
Amani is raising SUS25 million to continue exploration at the Giro gold
project in the DRC
which Eckhof was instrumental in discovering.
He is already noticing similarities between it and Giro.
"Kibali, I mean that is pretty much the
same as [Giro] in volcanoclastic rocks.
You have also got the granodiorite intrusions. It is pretty much the same sort of
setting," Eckhof said.
"The question is if I have got multiple
resources everywhere, I haven't got that
yet. But then again... it took me four or
; five years to develop all the
other separate deposits [at
Kibali]."
Made up of two exploration
permits covering 497sq km,
the Giro project sits within
the largely unexplored KiloMoto belt.
Amani has reported signifi-
' ^ I cant mineralisation from the
j fl I maiden drilling programme at
JU I the Douze Match prospect,
M I with results including 2m @
^^^ ™ 196 g/t gold from 12m, 15m
Klaus Eckhof
(5) 255.6 o/t Gold from 15m
and 3m @ 1,260 g/t gold
from 15m.
Drilling at the Kebigada prospect has
also returned some encouraging results,
including 97m @ 2.56 g/t gold from surface, 47m @ 4.13 g/t gold from 25m and
29m @ 5.93 g/t gold from 25m.
Amani also plans to start
aggressively exploring the
neighbouring Tendao project.
"[Investors] are also
keen to explore Tendao,
which we are in the process of acquiring," Eckhof
said.
"[Tendao] is around 5km
of old workings and operations from the Belgians out
of the 1950s. We've done
a lot there already, but we
won't start drilling until the
final signature is done.
"With that project
there is probably another
chance to maybe find another 2 moz fairly quickly
and at very good grades."
Once Luck Winner completes the next stage of
due diligence, both parties will enter into
a binding subscription agreement.
The two key shareholders of Luck Winner are Yu Qiuming and Fu Shen, who
both have several years of experience in
developing and mining copper and gold
projects in China.
Eckhof said the Chinese offer wasn't
the only one on the table, but it was the
most attractive.
"[Lower offers] didn't really interest me
because the last placement was done at
5c/share," he said.
"That is why I tried to get somebody
else to come in who would also take it
at 5c/share, rather than taking it at the
lower levels."
Momentum seems to be building at
Amani and the Giro project, and investors are starting to notice.
"For the other companies I have, suddenly I have started getting a lot of phone
calls. People are wanting to take big
stakes in it," Eckhof said.
"There seems to be a big appetite suddenly from China...I think they have to
deploy the US dollar somewhere, in resources in general. That is the only way
they can do it."
- Jon Daly