Moto Goldmines waits on DRC Government review

Moto Goldmines Ltd (MGL), the gold exploration and development company with operations in the Democratic Republic of Congo (DRC), is still awaiting the outcome of a review of mining contracts announced by the government of the DRC, in April of this year.

The DRC’s minister of mines has appointed a commission to review over 60 mining agreements and a report was expected by July, but is likely to be delayed by a month or two.

The delay has created uncertainties that could put back construction at MGL’s project, which is a joint venture with OKIMO, (30%) and Orgaman sprl (10%).

OKIMO is the state owned company and registered holder of the mineral rights to the MGL project; MGM controls 60% equity over the 2,350 square kilometre concession that is in northeastern DRC.

During the three months to the end of June, the company recorded a loss of A$3.5 million, down from A$5.97 million at the same period of 2006.

Expenditure during the period increase as a result of an enlarged workforce and growth in corporate costs such as maintaining listings on the TSX and AIM, as well as maintaining additional offices in Johannesburg and Kinshasa.

MGL has completed geological modelling and open pit designs for the DRC project and metallurgical test work is significantly advanced.

The company will be issuing its next resource update at the end of the year.