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Record Resources Teams up with Private Equity Group to Develop Gold Project in Djibouti, Africa
Calgary, Alberta--(Newsfile Corp. - August 28, 2023) - Record Resources Inc. (TSXV: REC) reports ...
About this update from Record Resources Inc
[{"type":"text","content":"Record Resources Teams up with Private Equity Group to Develop Gold Project in Djibouti, AfricaCalgary, Alberta--(Newsfile Corp. - August 28, 2023) - Record Resources Inc. (TSXV: REC) reports that it has entered into an agreement to acquire preferred shares from a private equity fund that owns and is developing a gold exploration property in Djibouti, Africa.The agreement is with the African Minerals Exploration & Development Fund III Sicar (AMED Fund III) registered in Luxembourg and Red Sea Gold B.V. and Nurtureex B.V., both of Utrecht, Netherlands. Red Sea and Nurtureex are AMED's operating entities and are the developers of the Djibouti gold project. These parties collectively control 69% of Thani Stratex Djibouti Limited (TSDL). It is TSDL that holds the mining claims in Djibouti.AMED Funds is a group of private equity funds that have invested in various mineral projects in Africa, some of which have already been successfully sold to third parties. AMED Fund's team is composed of highly experienced professionals in the mining and exploration industry with an impressive track record and network of partners.The sponsoring partner of AMED Funds is Rudolph de Bruin, an international mining industry veteran with decades of successful mining and exploration experience, who was recently involved in a consortium that acquired Canada Fluorspar (NL) Inc and its fluorspar mine in St Lawrence, Newfoundland.Pursuant to the agreement, Record will acquire half of AMED's preferred shares in the Djibouti project in return for investing US$7.5 million in exploration and development expenses over a three-year period. A first investment of US$2.5 million is due 12 months following execution of the agreement and at the two consecutive 12-month anniversaries thereafter.A co-operatorship agreement, to govern the development of the property, will be entered into once Record has made a first investment of US$1 million. Record holds a First Right of Refusal on the asset enabling it to bid on a takeover before another party.The preferred shares to be acquired by Record constitutes half of the preferred shares to be owned by AMED Funds. Following the transaction, AMED Funds will own 69 percent of the Djibouti project. Following the earning of its interest, Record will own half of the preferred shares and AMED Funds will own the other half. Further...