AHK Gold Company initiates drilling operations in Egypt's Wadi Dabur region

CAIRO - 7 December 2023: AHK Gold Company, owned by In2Metals, a Sawiris family company through Lamancha, has initiated its first drilling operations in the Wadi Dabur region within the scope of the exploration license granted to the company in 2022 in the Eastern Desert.

 

Egyptian businessman, Naguib Sawiris announced, through a tweet on X, that the initial drilling aims to cover 10,000 meters within two months, with the potential for expansion based on anticipated results.

 

He added that this aligns with the company's new strategy, formulated after its acquisition by "In2Metals" in August. The strategy aims to expedite drilling pace and expand exploration activities using cutting-edge mining technologies.

 

Wadi Dabur is one of four areas (including Wadi El-Gindi, Gebel El-Shalul, and Gebel Um Arafa covering a total area of about 1,566 square kilometers) won by AHK Gold in the first round of the global gold bid (1) for 2020. The Egyptian Mineral Resources Authority in the Eastern Desert presented this bid.

 

The company also secured two more sectors in the second round of bidding, covering the Bier Asal and Gebel El-Meit regions, with an approximate area of 350 square kilometers.

 

Engineer Tarek El-Molla, Minister of Petroleum and Mineral Resources, held a meeting in November with officials from AKH Gold, including Vincent Morel, the Regional Director, and Ahmed Salama, Exploration Supervisor in Egypt. The meeting aimed to monitor the company's activities in Egypt, according to a previous statement from the Ministry of Petroleum.

 

In August, "In2Metals" signed an agreement with "Elemental Altus," involving the former acquiring an 80.1 percent stake in AKH Gold (previously a subsidiary of the latter) and assuming administrative control. This acquisition, valued at $10 million, will be injected into AKH Gold shares over four years.

 

According to AKH Gold's website, the subscription proceeds will finance exploration operations in AKH Gold projects in Egypt.

 

The deal also includes Elemental Altus receiving $1.5 million in cash and a net return of 1.5 percent from the net smelter return ("NSR") of AKH Gold's current projects in Egypt. Elemental Altus will retain a 19.9 percent stake in AKH Gold upon completion of In2Metals' subscription for $10 million.