DRC GOVERNMENT MUST STOP SELLING ASSETS AND GOLD DEPOSITS FROM SOKIMO TO AJN FOR US$ 17 MILLIONS.
Referring to our press release of February 22, 2020, March 04 and April 16, the signatory organizations of this press release are stunned to read through the website of AJN Resources Inc., that the latter continue to mobilize investors to finance its gold mining project in the Democratic Republic of Congo.
As previously recommended, the signatory organizations are asking the likely and interested investors who want to venture into the AJN Resources project in the Democratic Republic of Congo to investigate how AJN Resources has signed a Memorandum of Understanding with SOKIMO to acquire 30% of the shares in the Zani Kodo project, how SOKIMO agreed to sell its 35% stake in the GIRO Goldfield project and how SOKIMO would also sell off a certified 45T gold deposit from Kibali-South.
By the way, it is worth reminding the Government of the Republic that it is likely that SOKIMO has a dispute with the company Mwana Africa Congo Gold (ASA), because of the transfer of three Mining Licenses (PE 5078, PE 5079 and PE 5081) of the Zani-Kodo project to the company Kodo Resources in violation of the provisions of the joint venture contract signed by the two partners in 2011. According to the information in our possession, Mwana Africa has invested a lot of money in the exploration of the deposits, estimated at nearly 3 million ounces, which are the subject of stock exchange advertising by AJN, at the risk of bringing the Republic into the First Quantum situation of sad memory. The signatories will inquire about this dispute.
The organizations signatories of this communiqué, taking the reaction of the Minister of Portfolio of 23 February 2020 and recalling the content of their previous press releases, considering the declaration of the elected representatives of the people of Ituri Province and the oral question of the national deputy of Watsa on this issue, believe that the President of the Republic and the Prime Minister should ask the Minister of Mines (and the Director General of the Mining Registry) to no longer give favorable opinions to companies with little credibility, and the Minister of Portfolio to instruct SOKIMO to rescind the Memorandum of Understanding it signed with the managers of AJN Resources for the following reasons:
- The 90-day legal and technical due diligence period has expired negatively since April 17, 2020, therefore AJN must no longer be in business relationship with SOKIMO;
- Politicians continue to stir up behind the scenes to force this leonine partnership;
- On its website https://ajnresources.com/, it is stated that AJN is an exploration and development company formed for the purpose of acquiring, exploring and, if warranted and feasible, developing natural resource properties. This is another farce like many others;
- Reading and rereading the information that AJN has made available to everyone, it appears that AJN has no assets other than an option right to acquire a lithium mine in the exploration phase called Salt Wells located in Nevada (United States of America) and owned by Great Basin Oil LLC;
- In reading and re-reading the information that AJN is making available to the public, it is also clear that AJN has not, in the past, developed any gold or other mineral deposits anywhere in the world;
- The shareholders of AJN Resources, including the German Klaus, have no activities to show for with SOMIKO in Kibali since before 2009, no projects developed to their credit or liability;
- AJN’s website indicates that the market value of an AJN share is CDN$ 1 or US$ 0.71and the value of the company would be CDN$ 19,100,000 or approximately US$ 13,500,000. AJN thus has a very low market capitalization. It would therefore be classified as one of the smallest companies that can exist on the stock exchange, known as “small cap” or “microcap”;
- According to a press release referred to in our first release, AJN proposed to raise interim financing of up to CDN$ 2 million by selling a portion of its shares at CDN$ 0.40 per share to serve as working capital and then issue bonds convertible into shares up to CDN$ 1,200,000;
- If SOKIMO plans to sell off the Kibali South project to AJN, it will be inadmissible and it will violate the Mining Code in several provisions including Article 182 which stipulates: “When a State portfolio company contributes a mining deposit, either to an existing company or for the constitution of a new company, the participation of the said company in the capital of the existing company or to be constituted is fixed according to the real value of the mining deposit being contributed”;
- Moreover, AJN Resources officials are seeking funds at the international level for SOKIMO deposits, in violation of the provisions of the Mining Code in its Articles 40, 41, 42 and 185;
- Considering that the Kibali South deposit is estimated at 45 tons of gold and more than US$ 3 billion dollars, this is a sell-off that the President of the Republic and the Prime Minister must stop as a constitutional duty to protect the property of the Republic and defend the interests of the Congolese people;
- The exploitation of the certified and confirmed gold reserves of Kibali South at the rate of Banro (4.5T/year) reassures ten years of socially and economically profitable exploitation for the benefit of SOKIMO, the population and the State as a sole shareholder;
- It should be recalled that Kibali South was sold to SOKIMO by Kibali Gold Mines in 2012 within the framework of the contract between them in order to put the state-owned company back in its mission as mining operator, and to enable the latter to meet its obligations, including the regular payment of salaries;
- Eight (8) years after this sale, we note that this deposit has remained industrially unexploited and we denounce this attempt to sell it to AJN at a (fictitious) amount that Congolese businessmen from Watsa and Durba are able to raise on site in the DRC;
- We are also told by reliable sources that the transfer of SOKIMO’s holdings to AJN would take place through a shell company called MINOR. Not having any details on the owners of this back end and knowing that it does not belong to the state, we see it as a fraud and a well-orchestrated embezzlement to duplicate dishonest practices that allowed speculators and commissionaires to seize the large and rich copper and cobalt deposits of Katanga between 1996 and 2007;
- This use of a front company to justify a grotesque financial arrangement is akin to money laundering that the leaders of the Democratic Republic of Congo cannot encourage or tolerate;
- Suspicions of corruption are said to hang over this memorandum because AJN Resources has signed a memorandum of understanding with SOKIMO to acquire all of SOKIMO’s shares in all existing and ongoing projects. Knowing the modus operandi of certain operators and agents, the signatories of this communiqué have indications, from reliable sources, that AJN officials have promised undue and illegal advantages to SOKIMO officials as soon as the mobilisation of funds is effective;
- The Minister of the Portfolio who should request the suspension of this memorandum has not yet given the order to SOKIMO officials to stop this Mafia transaction to date.
In view of all the foregoing, given the urgency and considering the position of the elected representatives of the people of Ituri and Haut-Uélé who legitimately represent the populations whose sub-soil abounds in the coveted gold deposits that are to be sold off, the signatories of this communiqué request that:
To the President of the Republic, Head of State
- To become personally involved by consulting the elected representatives of Ituri and Haut-Uélé, the representatives of local communities (customary chiefs) and civil society organizations to stop this sell-off in favour of speculators (traders) in accordance with its statements on the new contracts.
To the Presidents of the two Chambers
- To program an oral question by the Honorable Abatome from Haut-Uélé on this sell-off;
- To address the Ministers of Mines and Portfolio in a radio and television plenary session.
To the Prime Minister, Chief of Government
- To instruct the Ministers concerned to cancel any commitment with AJN Resources;
- Put this issue on the agenda of this week’s Council of Ministers as a priority and instruct the ministers to respect the Mining Code and the due diligence of potential investors.
To the Minister of Portfolio
- To order the immediate cancellation of this Memorandum of Understanding between AJN Resources and SOKIMO;
- To suspend SOKIMO officials (Chairperson and CEO) involved in this mafia-like transaction;
- To organize a call for tenders for the acquisition of SOKIMO shares in all these projects, giving preference to operators with substantial financial resources instead of speculative operators (traders) on the stock exchange.
To the Head of SOKIMO
- To cancel this Memorandum because AJN Resources does not have enough financial resources to carry out these projects;
- To organize a call for tenders enabling real mining operators to acquire its shares in full transparency.
To the Local Communities
- The local communities of the provinces concerned and other gold-producing provinces, provincial and national elected officials, notabilities and traditional chiefs, local and national civil society organizations to mobilize behind the “Touche Pas A Mon Or, Touche Pas A Nos 3T” campaign against the sell-off of our minerals by the saboteurs of the “People First” motto launched by the Head of State.
To the Canadian Stock Exchange
- Investigate AJN’s statements that are full of falsehoods that are intended to confuse potential investors.
The signatories of this press release reserve the right to seize the stock exchanges on which AJN Resources is listed for further investigation in the event that SOKIMO officials persist in this mafia-like transaction.
Done at Bunia-Faradje-Durba-Kinshasa-Kolwezi-Lubumbashi-Watsa on 30 April 2020.
The seventeen signatory organizations and platforms :
SOCIETE CIVILE FORCES VICES DE WATSA, CORDINATION TERRITORIALE DE LA NOUVELLE SOCIETE CIVILE DE WATSA, LICOCO, CERN/CENCO, SECRETARIAT NATIONAL DU RESEAU DE COMMUNICATEURS DES RESSOURCES NATURELLES, HDH, TOUCHE PAS A MON COBALT, JUSTICIA, PRESS-CLUB RDC, OCEAN, COORDINATION CADRE DE CONCERTATION DE LA SOCIETE CIVILE DU LUALABA, CASMIA, LINAPEDHO, ESPOIR ONG, SARW, RND ASBL, PODEFIP.
Medias Contacts :
– Ernest MPARARO (+243816049837)
– Dieumerci THUAMBE ADUBANGO (+243817417307)
– Henri MUHIYA (+243810526141)
– Antoine MUNGU (+243813611733)
– Georges Bokundu (+243810348785)
– Franck Fwamba (+243810348785)
– Email : RDC.NOTREPATRIE@protonmail.com
– N° 14, Av Lwango, Quartier 1, Ndjili, Kinshasa.
– N° 129, Av Kasaï, Lubumbashi, Haut-Katanga.
– N° 4, Av de la Justice, Quartier Bankoko, Commune Mbunya, Bunia, Ituri.
– N° 2, Rue Planteki, Bld Lumumba, Commune Kibali, Watsa, Haut-Uélé.
– Bureau de la Société Civile, Immeuble John Namate, Quartier 75, Commune Mongali/Durba, Haut-Uélé.
– Bureau de l’ONG SAIPED (non loin de la Radio Rhinocéros), Quartier Farange, Cité de Faradje, Haut-Uélé.
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