The British firm which had lodged a court case in 2015 following the cancellation of its mining license in Migori will continue to excavate gold in the Western part of Kenya.
Red Rock Resources, the ore company listed at the London Stock Exchange (LSE), has received the government’s approval to continue mining the precious metal within Migori, according to Business Daily.
In an update by Red Rock on September 19, the UK firm had said that it was pleased to note the approval for the grant of licenses by the Mining Rights Board (MRB). “Upon receipt of official confirmation of intended grant, the Company will be invited to fulfil fee payment and registration requirements. The grant of the licenses remains subject to the approval of the Cabinet Secretary and a further announcement will be made as and when the licenses are confirmed.”
Now, Business Daily reports that the government has approved the granting of a mining license to the UK firm, allowing it to continue with its Migori Gold Project.
In Red Rock’s update in mid-September, the company’s Chairman Andrew Bell, had said, “We are entering the last stage of what has been a lengthy process, and thank all involved. We look forward to the confirmation of grant, and to renewing progress towards our aim, which is to have a producing gold mine.”
The vehicle driving Red Rock’s Migori Gold Project is local firm Mid Migori Mining Company Ltd , of which the UK firm holds a 75% direct interest in. Mid Migori Mining Company controls a 1.2 million ounce gold resource in Kenya, and is licensed by the Mining Ministry. On current market value, the gold deposit has a value of around Ksh187 billion.
In May 2015, the Kenya government terminated the licenses of Mid Migori Mining Company, but Red Rock went to court and was granted a stay on the order.
Last October, the ore firm announced that the case against the Kenya government had been withdrawn, and that the company was free to apply for licenses. “A Consent has been signed on behalf of the Attorney General and the Company and is being filed with the court. Under the terms of the Consent, the parties have agreed that the case be marked as withdrawn with no order as to costs, that the Applicants are at liberty to apply for licenses..” a statement on the Red Rock site reads in part.
The location of the gold resource is covers an area of 310km, located in the South West corner of Kenya and approximately 290km west of Nairobi. The project tenements lie within the Migori and Narok Counties, extending approximately 63km from Lake Victoria in the west and parallel to the Kenya/Tanzania border which lies 10km to the south.
Beyond Kenya, Red Rock also has gold projects in Ivory Coast and Colombia.
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