Time running out on Lencourt’s option

Its a race against time as Lencourt (TSE) seeks formal approval from the Zaire government to purchase a Zairean mining company. Lencourt’s option to purchase a 72% interest in Sominki, a tin and gold producer, expires in September. Meanwhile, although the Council of Ministers has approved the purchase, several details of the agreement require clarification.

Lencourt has been trying to get approval to acquire Sominki since March, 1989, when it entered into an option agreement to buy an interest from Cofimines, a Belgian company, for US$5 million.

If the agreement goes ahead, it will pave the way for Billiton International Metals to exercise its option on the Twangiza gold project, where reserves are estimated to contain 650,000 oz. of gold. Billiton will earn its interest in the property by paying Lencourt US$6 million.