(MENAFN - ProactiveInvestors - Australia) Regal Resources (ASX: RER) has finalised the sale of a 10% stake in the Regal SK SPRL in the Democratic Republic of Congo to joint venture partner Afrimines Resources for US7 million.
Proceeds from the sale will be used to advance its ongoing exploration programs over its 14 tenements in eastern DRC.
The permits are strategically located in a major gold producing area, the Twangiza Namoya belt, where Banro has delineated in excess of 11 million ounces of gold.
Funds will also be used to support a regional exploration work program testing multiple gold-in-soil anomalies delineated in the broader permit area and enable a JORC Resource to be estimated subject to successful completion of the current 12,000 metre diamond drilling program at its flagship Ngoy Project.
Regal retains a 60% stake in Regal SK while Afrimines now holds 40%.
However, Regal will retain its right to purchase an additional 30% interest in Regal SK, to go to 90% of the project, at a price to be determined by an Independent valuation upon completion of the first feasibility study.
Drilling is ongoing at the Kadutu Prospect where the exploration target is 5 million tonnes at a grade of between 2 grams per tonne to 4g/t gold, and it is expected that a successful outcome of the program will allow a JORC compliant resource to be estimated this year.