Regulatory Environment for Mining
The mining code of CAR was published as ordinance 001 in 2004. In terms of the mining code all areas shall be available for grant of mineral authorisations and mineral titles. In terms of the ordinance all natural or legal persons irrespective of their nationality shall be entitled to carry out or conduct an activity governed by the ordinance. However a person wishing to conduct mining activities is required first to obtain a mineral authorisation or mineral title granted under the ordinance. In respect of exploration there is provision for reconnaissance authorisations to be issued, as well as reconnaissance permits and exploration permits. Exploration permits are governed by Section 3 of Chapter 2 of the code. The initial validity period of an exploration permit shall be three years and it shall be renewable twice for the same duration on an application of the title holder and the maximum area in respect of which an exploration permit is granted shall not exceed 1,000 km2.

On 8 February 2007 Pan African and CARgold (Pan African’s joint venture partner in the CAR) (collectively, “JV”) concluded a mining convention with the Ministry of Mines, Energy & Water Affairs in the CAR (“State”). The State has agreed to facilitate the exploration and development by the JV of the Bogoin Licence area in the CAR. The JV committed to pay the State US$700,000 in respect of the rights acquired by it – US$200,000 was payable on signature and the balance is payable in instalments at various stages of the development of the project. The convention endures for 25 years, extendible by agreement. Once mining phase is reached, the parties will transfer the project to a CAR incorporated company and the State will hold a 10 per cent. free carry in that company. The State has provided a number of concessions and exemptions in respect of taxes, duties and administrative provisions to the benefit of the CAR company housing the project.