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B.C. Junior Miner Buys Into Copper and Cobalt Project in Africa
By: AllPennyStocks.com News
June 21, 2010
It’s the same kind of lure that drew the early explorers to Africa and the Indies: the quest for gold and other treasures from far-flung places throughout the globe. Africa is a particularly rich spot for precious metals other than gold these days, making this a great time to be alive in the mining industry.
To enhance their standing within that space, some companies are throwing in their lot with other companies, among them, British Columbia-based African Metals Corporation (TSX-Venture:AFR), which announced in mid-June that it had entered into a letter of intent with Republic of Congo-based TSM Enterprise s.p.r.l., to acquire up to a further 33% interest in Luisha Mining Enterprise s.p.r.l. and the latter’s Luisha Project located in the central African nation.
AFR completed its acquisition of its wholly-owned subsidiary Chevalier Resources Inc. in March, thereby obtaining a 57% interest in LME and the Luisha Project owned by Chevalier. It is through Chevalier that AFR will pick up another 18% interest in LME, for common shares amounting to $1.5 million.
The Luisha Project is located 75 kilometres northwest of the city of Lubumbashi, capital of the southern Province of Katanga and consists of approximately 16.2 square kilometres, and includes a small historical open pit mine and associated waste rock pile and contains major copper and cobalt deposits in the Central African Copper Belt of Zambia and Congo.
AFR is focused on the discovery and development of significant high grade Copper and Cobalt deposits in the highly mineralised Katanga Copper Belt of the world renowned Africa Copper Belt in the Democratic Republic of Congo.
The political situation in the country has improved significantly in recent years, and in 2006 the country held its first free elections in more than 40 years. Its economy has historically been dominated by its resource sector. The copper belt region of the country, in Katanga, is renowned as one of the richest mineral regions of the world. Adverse political events led to a significant reduction in national output, however diamonds, copper and cobalt remain the principal foreign exchange earning exports for the country. The economic conditions of the DRC are improving as a result of recent political stability in the country.
African Metals has an option to earn an 80% interest in eight properties covering 682 square kilometers within the prolific Katanga Copper Belt in the southeastern part of the DRC. The Katanga copper belt contains numerous high-grade copper, cobalt and zinc deposits. Together with the adjoining Zambian copper belt, this forms one of the greatest metallogenic provinces of the world, much of which remains unexplored.
The company’s stock appears similarly in the realm of unexplored territory; folks started discovering it soon after the announcement was made of the TSM sale, and more than 440,000 shares changed hands on June 21. The price remained around the 25-cent mark, after peaking around 55 cents last February. AFR’s 52-week low was around seven cents, to which it sank last July. As the markets for copper and cobalt improve, so, too will the fortunes of this Canadian-based company, seeking its fortune in the heart of Africa.
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