Wednesday, August 22, 2012

Chalice Gold Mines closer to sale of Zara Project in Eritrea - Proactiveinvestors (AU)

Chalice Gold Mines (ASX: CHN; TSX: CXN) is a step closer to selling its 60 per cent interest in the Zara Gold Project in Eritrea to China SFECO Group.

SFECO has agreed to acquire Chalice’s 60 per cent interest in the Zara Project for US$78 million in cash plus a deferred payment of US$2 million.

SFECO has received all necessary regulatory approvals in the People’s Republic of China, including that of the National Development and Reform Commission, to complete the transaction.

SFECO requested an extension of the date for the satisfaction of conditions for its acquisition of Chalice’s 60 per cent interest in the Zara Gold Project in Eritrea by one month to 26 August 2012.

Approval of the Minister for Energy of Mines of the Government of the State of Eritrea for the transfer of the interest in the Zara Project is the next step and completion of the sale of the 30 per cent interest in the Zara Project by Chalice to the Eritrean National Mining Corporation.

This latter condition is for the benefit of Chalice, which can elect, at its option, to waive the same. Chalice said it was confident that these remaining conditions will be satisfied shortly, leading to completion in early September.

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