MINING IN AFRICA SPECIAL — Taylor Rand moves into Zaire

CDN-listed Taylor Rand and a conglomerate in Zaire intend to form a joint-venture company which would own two gold properties in the African country.

The two producing properties, in the Maniema and Kisangani regions of Zaire, comprise about 2,000 sq. km. Current gold production is from placer deposits.

Taylor Rand and its Zaire partner, Mbula SPRL, will each own half of the joint venture.

In consideration for Mbula vending its gold properties into the joint venture, Taylor Rand agreed to provide all necessary working capital for the joint-venture company and to manage the day-to-day operations. Assuming the transaction closes as planned (in late February), the partners will modify the operation in order to boost production to about 3,600 oz. per month, starting as early as March and April of this year.

Zaire is rich in copper, cobalt, diamonds, gold, manganese, uranium and zinc. Precious metal deposits are also attracting interest. However, foreign investment in the country has been minimal because of the political climate and various economic problems.

Taylor Rand is of the view, however, that measures will soon be taken to improve the investment climate.