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By: AllPennyStocks.com
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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