February 10, 2017: Alliance Global Capital Ltd, is in negotiations to acquire up to 50% of Maifa Mining Corporation Sarl. and is a company registered in Mali.
The Company mines gold in Mali, and in particular the Kokoyon area. The actual mining process of gold is very basic; first to find resources, next to extract them and then separate the gold bearing rocks from the non-gold bearing rocks. Crush the gold bearing rocks and use centrifugal forces to separate the raw gold from the rocks. And then finally, refine the raw gold.
The Company consists of a group of entrepreneurs, who have been working in Mali for more than 5 years, and at present, it holds six mining permits in Mali with areas of between 10 – 70 km2.
A very important key success factor in mining is to have a social license to operate. The Company has been working in Kokoyon and other parts of Mali for 5 years and has built up very strong relationships and working partnerships with the villagers, village council, village chiefs, local mayors, heads of local prefectures, chiefs of police and many other stakeholders – this has even placed the Company several times in the Malian national news for its social work.
The opportunity exists in the expansion of a bulk testing gold production facility and to rollout the same operating model on 3-5 further mines. The Company has 6 mining permits, all with good potential. The plan is to pick the best 4 permits and develop operating mines in them. It is possible all 6 will be commercially attractive.
The first mine has a very large scale production facility. This facility has enabled the Company to test and verify the gold deposit, perform production trial to assess the process parameters of the material from the deposit, hire train and run operators, test the logistics and develop a working relationship with the village and local authorities.
After the first mine is completed and producing, within a year the next mine can be rollout and replicated. The speed of these rollouts is only possible because the already completed work in searching, acquiring and doing early stage geological exploration on these permits.
We expect to complete negotiations before the end of the month.