AJN yields to Barrick pressure, won’t buy into Kibali mine

Canadian junior AJN Resources (TSX-V: AJN) has dropped plans to acquire 10% of the Kibali gold mine in the Democratic Republic of Congo from state-owned Société Minière de Kilo-Moto (SOKIMO), after facing stern opposition from Barrick Gold (TSX: ABX) (NYSE: GOLD), the mine’s operator.

The world’s second-largest gold miner and AngloGold Ashanti, which each own 45% of Kibali, said SOKIMO had not consulted nor informed them about the transaction even though it is contractually bound to do so.

Last week, Barrick sent AJN a cease-and-desist notice to block the planned purchase of the interest in Congo’s biggest gold mine. 

“As a result of its due diligence and further information received, it will not proceed with its proposed acquisition,” AJN said in a release late on Sunday.

The explorer noted it was continuing due diligence on other projects it plans to acquire from SOKIMO, namely 30% stakes in Zani-Kodo, Nizi, and Kibali South, and 35% stakes in Giro Goldfields and Wanga (Tendao).

Already one of the world’s most highly automated underground gold mines, Kibali continues its technological advance with the introduction of truck and drill training simulators and the integration of systems for staff safety tracking and ventilation demand control.

The simulators, Barrick said in January, will also be used to train operators at the company’s Tanzania mines.