LONDON (Thomson Financial) - Moto Goldmines Ltd (MGL) said it sees progress at the Moto gold project in the north-east of the Democratic Republic of Congo being held back by a new DRC government review of mining agreements in the country.
MGL said it has recently obtained a copy of a formal legal notice under which it understands a commission has been appointed under the authority of the Minister of Mines to review various mining agreements entered into by the DRC government, or other state bodies.
MGL said it has been working closely with state body L'Office des Mines d'or de Kilo-Moto (OKIMO) for confirmation that OKIMO is authorised to resume its discussions with the company which include the withdrawal of the several allegations of breach of various agreements.
However, it understands that OKIMO will be restricted from progressing matters until the various agreements have been reviewed by the commission.
MGL said it is aware of news stories circulating with statements from the Deputy Minister of Mines to the effect that some or all of its contracts will be reviewed, with a decision expected after mid-July.
It said it is also aware that the Deputy Minister of Mines was quoted recently as having said that the period for curing of breaches in relation to MGL's agreements expired on April 26 without MGL having fulfilled its commitments.
However, MGL said it this statement has been made 'without foundation', and pointed out that the OKIMO Board of Directors and relevant government ministries have been made fully aware of the work carried out by MGL and its partners in compliance with its contractual obligations.
The company remains confident that any review process will confirm the validity and fairness of its recently negotiated protocol for the project. tf.TFN-Europe_newsdesk@thomson.com tc COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.