Canadian Mining Company Buys Majority Shares in Seven Ugandan Rare Metal Mines

4116 Views Kampala, Uganda
A Canadian mining company, Vangold Resources Limited, has announced the acquisition of a 90% interest in seven rare metal mines in Uganda. A press statement from Vangold Resources said the acquisition was facilitated through the company's subsidiary, Horn Rare Metals Limited, which entered into a Share Purchase Agreement with a Ugandan corporation and to obtain the properties. Details of the purchase disclosed by Vangold Resources are sketchy. The press statement said that because Horn Rare Metals is anticipating further acquisitions in South America and the former Soviet Union, Vangold is not at liberty to disclose the name of the rare metal it has invested in at this time. Vangold is a diversified natural resource company. In Uganda, in addition to the new acquisition, Vangold has licenses covering over 60 square kilometers in the prospective Kilembe copper and cobalt belt. It also has licenses covering over 300 square kilometers in the Kilo Moto and licenses covering over 287 square kilometers in the Kafunzo area. In Kilo Moto in the West Nile region, Vanguard operates under an agreement to option a gold prospect, while in Kafunzo it is mining both nickel and cobalt. The Ugandan government is currently spending 42 million U.S. dollars on airborne geophysics in the area of Vangold's licenses.