Chalice Gold to sell Zara stake to China’s Sfeco

Chalice Gold Mines Ltd. said Wednesday it plans to sell its remaining 60% stake in the Zara project in Eritrea to China’s Sfeco Group, a subsidiary of Shanghai Construction Group Co. , for up to US$100 million.

Under the agreement, Sfeco will pay Chalice US$80 million in cash for Chalice’s share of the mineral resource at the Koka gold deposit and a further sum of up to US$20 million to be agreed between the parties or by arbitration for the balance of the area falling within the Zara Project, Chalice said in a statement.

This follows an agreement in July 2011 in which Chalice agreed to sell a 30% interest in the Zara project to Eritrean National Mining Corp., building on its existing 10% interest in the project.

Chalice Chairman Tim Goyder said the sale of the 60% stake would end Chalice’s involvement in the Zara project and will leave Chalice with a “substantial cash balance, enabling it to pursue other opportunities in Eritrea and around the world.”  - MarketWatch

Tags: Chalice Gold Mines, Gold, Gold mining, Gold mining companies, Gold mining industry

Posted by admin on Dec 28 2011. Filed under Gold mining. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry