Kazakhstan Potash picks up its third project in the Congo
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Junior Australian explorers don’t seem to be deterred by the issues facing the Congo, with Kazakhstan Potash Corp the latest to pick up another project in the troubled African country.
The company (ASX:KPC) is acquiring a 51 per cent stake in the Kikata North and Mifumbi copper and cobalt projects in the Democratic Republic of the Congo.
The move is part of its plan to diversify beyond its three potash projects in Kazakhstan.
The DRC, however, is facing a number of issues including the introduction of a new mining code that features a new windfall profits tax and higher royalties.
The country is also facing a fresh outbreak of the deadly Ebola virus, adding a further layer of risk for companies looking to invest there.
This is the third deal Kazakhstan Potash has done in the DRC in the past three months.
The company will pay La Société Katanga Copperbelt Mining SA $1 million in cash and issue $3 million worth of shares to acquire the majority stake in the two new projects.
Kazakhstan Potash says the South Central African copper belt in the DRC is relatively underexplored but considered highly prospective for copper and cobalt mineralization.
Stockhead is seeking comment from the company.