Even before Randgold Resources Ltd. (GOLD) unveiled its offer for a Democratic Republic of Congo-focused gold explorer, the company's chief executive was being reminded by shareholders of the risks associated with the central African country.

However, these risks can be managed, Mark Bristow said Monday in an interview ahead of a trip to Kinshasa to discuss with the government there plans to cooperate in what could be a key gold mine for the company in years to come.

"This is a challenging part of the world," Bristow said. "Political risk is high, and logistics risk is even higher."

Bristow said he began talking with management at Moto Goldmines Ltd. (MGL.T) toward the end of last year and began evaluating a possible takeover before larger AngloGold Ashanti Ltd. (AU), which has agreed to partner with Randgold to buy Moto.

"Before any deal was agreed, I saw our shareholders and key Moto shareholders. I also contacted the government" in Kinshasa," he said.

He said that while some large Randgold shareholders were concerned about the potential risk of buying a company whose key asset is a gold project in Congo, they were responsive to how the acquisition has been structured to share risk with AngloGold, the world's third-largest producer of the precious metal.

Bristow said also key to Randgold's decision to proceed with an offer for Moto was the support of Congo's government, which through state-owned Offices des Mines d'Or de Kilo-Moto owns a 30% interest in the Moto gold project.

Follow-up talks with the government will take place this week to agree to details of their cooperation on the gold project and to discuss issues such as a hydropower source to power a potential mine, making use of the road network in nearby Uganda, and the movement of about 11,000 people in the area so the site can be developed, Bristow said.

"All of this will need government partnerships," he said, adding that agreements made now would allow Randgold and AngloGold to move smoothly toward a bankable feasibility study on the Moto project after the Moto takeover is completed.

Perth, Australia-based Moto earlier this month accepted an offer from Randgold that values it at about $500 million, topping a rival bid from Vancouver-based Red Back Mining Inc. (RBI.T). Randgold, which is focused on gold mines in west Africa, has separately agreed to subsequently sell 50% of Moto to AngloGold for $244 million cash that will help fund the Moto deal.

A key attraction to Moto is its Congo project, which AngloGold CEO Mark Cutifani has said is one of Africa's largest undeveloped mineral resources. Moto has estimated the advanced exploration project has a mineral resource of about 22.5 million ounces of gold.

"We don't need Moto for tomorrow, neither does AngloGold. But if we didn't take it at a reasonable price, someone else would," Bristow said.

Randgold had considered opportunities to bulk up its pipeline of projects in South America and Russia, but ruled them out in favor of central Africa. The region, he said, has similarities to west Africa or about a decade ago and has the potential to see a similar rise in the concentration of producing gold mines.

He said Congo is in transition, but the government is legitimate and moving toward a "real" election, and has realized it need to partner the mining industry in order to benefit from its mineral wealth.

-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; robb.stewart@dowjones.com