JOHANNESBURG (Reuters) - Canadian miner Banro Corporation has agreed to sell its Namoya Mining gold mine in Democratic Republic of Congo to Shomka Resources Ltd, in which China's Baiyin International Investments has a minority stake, it said on Tuesday.
Banro mines have faced several attacks by armed militia in eastern Congo. Two of its workers were kidnapped in July 2019.
Banro told Reuters in February it was looking to sell Namoya at a discount, after it was forced to suspend operations there and at several other mine sites.
Under the deal, which is subject to final approval from Congo's government, Banro would receive a perpetual royalty for all production from the Namoya property, it said.
Banro Chairman Brett Richards declined to disclose the purchase price or the royalty.
The buyer, Shomka Resources, is a joint venture owned 65.5% by Congolese-owned Shomka Capital Ltd and 34.5% by Chinese firm Baiyin International Investments Ltd. The Chinese company bought Banro's Twangiza mine in January.
Shomka Resources Chairman and Chief Executive Victor S. Kasongo said his firm aimed to resume production at Namoya by early January. He said the new owners were speaking to communities near the mine on alleviating poverty and keeping the peace.