Golden Square Equity Partners has entered into a deal to acquire London-listed ARC Minerals’ interest in Casa Mining, owner of an almost 74% share of the Akyanga Gold Project in the Democratic Republic of Congo. The binding agreement sees Golden Square pay $50 million for ARC’s 99.43% stake in the business as well as assume the company’s debt of approximately $2.3 million as at the end of September last year.
An initial payment of $5 million is being made in the form of a loan note which comes due in cash in March next year or in the form of the equivalent value in shares any publicly-listed company which may have acquired Casa Mining by that point. The balance will be paid as royalties from the production of gold by any of Casa Mining’s projects. The company warned that the flow of royalties was dependent on Casa’s success at raising additional development funding, completing certain studies and winning the required permits.
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