Explorer Vector Resources has locked in a $49 million funding deal as it moves to acquire a 60 per cent stake in the 3.2 million ounce Adidi-Kanga gold project in the Democratic Republic of Congo.

The deal sent the Vector (ASX:VEC) share price up 9 per cent in morning trade.

The funding, from Dubai-based “diversified conglomerate” Fast Telecom (FT) follows a $28 million debt facility with Medea Future Materials Fund announced in September.

The FT funding would be provided in 3 parts — $7 million on legal completion of the Adidi-Kanga acquisition, $14 million on presenting the approved work plan and budget for the project’s definitive feasibility study (DFS), and $28 million after the DFS was finalised and a decision to mine had been made.

A DFS is an advanced study to determine with high confidence whether or not a resource can be mined economically.

The finalisation of this debt facility was “a major step” in the acquisition of Adidi-Kanga, Vector chief Simon Youds said.

“The signing of these key agreements is a transformational development for Vector and its shareholders, as it represents a major step in Vector acquiring the majority share of what is a truly world class gold asset,” he said.

The Vector Resources (ASX:VEC) share price has traded between 1.2c and 4.1c over the past year.
The Vector Resources (ASX:VEC) share price has traded between 1.2c and 4.1c over the past year.

Adidi-Kanga has a mineral resource estimate of 15 million tonnes at 6.6g grams per tonne of gold for 3.2 million ounces.

Anything above 5 grams per tonne of gold is considered high grade.

Previous owner AngloGold Ashanti spent more than $728 million on exploration and development activities between 2005 and 2013.

This included the start of mine construction activities — including purchase and delivery of major mechanical equipment to site — before the gold major placed the project on care and maintenance.

“Given the body of work completed to date by AngloGold Ashanti, the Adidi Kanga Project is capable of rapid development, and it is our clear intention to immediately commence an accelerated DFS program,” Mr Youds said.