The government of the Central African Republic has set its seal on a mining convention with Axmin (AXM-V) for the development of company’s Bambari exploration permit, in the south-central part of the country about 280 km northwest of the capital, Bangui.
The agreement sets out terms for development of the Passendro gold deposit on the permit area, where Axmin has outlined an indicated resource of 13.2 million tonnes grading 2.5 grams gold per tonne, and an inferred resource of another 19.3 million tonnes at 1.8 grams per tonne.
Under the convention, the government gets a 10% carried interest and a 2.25% net smelter return royalty, and can buy in for a further 10% working interest. The operation is exempt from corporate taxes for five years, then pays at 30%, and it will be exempt from value-added taxes on fuel, consumables, capital equipment, and contractor’s fees.
The government has also exempted the project from import duties for five years and from withholding taxes on capital returned to the company. The convention has a 25-year life, and can be renewed by agreement.
A pre-feasibility study on Passendro is in the works, examining the economics of a 150,000-oz.-per-year mine, with either a mill or a heap-leach plant.
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