Africo rebounds on positive words from DRC

Africo Resources (ARL-T, AFCRF-O) exploded up the market after winning official word that it is the owner of the Kalukundi copper-cobalt project in the Democratic Republic of the Congo (DRC) .

The Minister of justice for the DRC stated that Africo, not rival Akam Mining, was the owner of the project via its ownership of Swanmines s.p.r.l. Swanmines owns the Kalukundi asset. Africo argues that it owns Swanmines through its subsidiary, the H&J Swanepoel Famille Trust s.p.r.l.

The conflict between Akam and Africo flared up over which company ownes Swanmines and its 75% interest in the Kalukundi which is one of the world’s highest grade medium size copper cobalt mines

State-run miner Gcamines is also in the mix through its 25% interest in the project. Akam says Gcamines sold it the project for US$600,000 after a US$3 million default judgement went against Africo and in favour of an ex-employee. A court ruling back in April had confirmed Akams claim.

After that verdict, Africo took its fight all the way to the Supreme Court. The Court said Africos motion for judicial misconduct was admissible but has yet to hand down a verdict on the case beyond that.

The legal squabbling caused Africo to withdraw a planned $130-million financing that was slated to pour into developing Kalukundi.

The deposit lies within the Katanga Copperbelt, in the Kolwezi district of Katanga province, in southeastern DRC. It has probable reserves of 7.8 million tonnes at 2.37% copper and 0.69% cobalt.

Africo was launched in December, spun out of Rubicon Minerals (RMX-T, RBY-X) to hold its African assets and develop of Kalukundi.

In Toronto on Sept. 14, Africo shares finished 61% or 72 higher at $1.90 on nearly 560,000 shares traded.