By MAIMBOLWA MULIKELELA –
LUIRI Gold Limited, a base metal exploration and development company has entered into a binding Heads of Agreement (HOA) with Bamboo Rock Limited for the sale of a 75 per cent majority stake in its subsidiary firm, Luiri Hill Gold project in Lusaka-west.
This means that Luiri will retain a contributing 25 per cent equity stake and operational input in the projects via a shareholding agreement to be negotiated.
In a statement issued in Lusaka yesterday, the HOA envisages that the company selling its 75 per cent of various Luiru subsidiaries to Bamboo, would also assume board and management control of the Zambian operations.
“The Company will maintain a 25 per cent shareholding in the Luiri subsidiaries and will be required to contribute to the of funding development activities in the Zambian operations.
But the company will not start contributing to such funding until after March 31, 2014 at which time it is envisaged that Bamboo will release an updated development plan for Dunrobin,” the statement read in part.
In support of this view, the company has mobilised a grader and bulldozer to the Dunrobin site to commence development activities.