From: Biniam Haile \(SWE\) (eritrea.lave@comhem.se)
Date: Thu Jun 04 2009 - 16:36:53 EDT
Chalice Gold Mines Limited merger update
Thursday , 04 Jun 2009
Chalice Gold Mines and Sub-Sahara Resources - MERGER UPDATE
Sub-Sahara Scheme Booklet lodged with ASIC.
Funds advanced by Chalice Gold Mines to Sub-Sahara to allow
time-critical exploration activities of the Pre-Feasibility and
Feasibility Studies, due for completion by October 2009 and May 2010
respectively, at the Zara Gold Project, Eritrea.
Chalice Gold Mines Limited (ASX: CHN - "Chalice") and Sub-Sahara
Resources NL (ASX: SBS - "Sub Sahara") are pleased to provide the
following update on the progress of the proposed merger between the two
companies and the on-going work programme in Eritrea.
The proposed merger is designed to consolidated ownership and fund
ongoing development of the high-grade 944,000oz Zara Gold Project in
Eritrea, East Africa, combining Chalice's strong cash position with Sub
Sahara's 69% interest in the Project.
The merger, together with a separate transaction with Africa Wide
Resources Limited, will see Chalice secure an 80% interest in the Zara
Project as the basis for a long-term exploration and development
strategy in the Arabian-Nubian Shield - an emerging gold and base metal
province.
Scheme Booklet and Indicative Timetable
Sub-Sahara has advised that the Scheme Booklet in relation to the
proposed merger has been lodged with the Australian Securities and
Investments Commission (ASIC) for its review.
A revised indicative timetable to completion of the merger is as
follows:
Lodgement of Scheme Booklet with ASIC
2 June 2009
First Court Hearing
18 June 2009
Despatch of Notice of Meeting and Scheme Booklet to SBS Shareholders
23 June 2009
First Scheme Meeting
22 July 2009
Second Court Hearing
30 July 2009
Lodging Court Order with ASIC
6 August 2009
Loan Facility
A loan facility of A$450,000 has also been made available to Sub-Sahara
by Chalice to fund further development of the Zara Project (Koka Gold
Deposit) pending implementation of the proposed merger. The funds will
be used to advance time-critical elements of the pre-feasibility and
feasibility studies as set out in the recent license renewal
notification.
Funds advanced under the facility, together with accrued interest, are
repayable if the merger is not implemented by 30 September 2009 (or such
later date as Chalice may agree). In this event, the loan must be
repaid either in cash or, at Sub-Sahara's election, by the issue of
Sub-Sahara shares at an issue price of 1.3 cents per share. The facility
is secured by a fixed and floating charge over Sub-Sahara.
Immediate Work Program
Major elements of the immediate work programme will include water
drilling and hydrological studies, metallurgical test-work, preparation
for further resource definition drilling and ongoing environmental,
geological and topographic data collection.
A percussion drilling programme to investigate potential water-bearing
structures identified by targeted geophysical surveys and drainages is
planned and discussions are currently underway with several contractors
to conduct this work.
Drill core from six metallurgical holes drilled at the Koka deposit in
2008 is currently held by Ammtec metallurgical laboratories in Perth and
a test-work program designed by the Company's consultants has commenced.
A further 5,000m of drilling is required to infill the Koka resource and
upgrade it from its current Indicated and Inferred status. It is planned
that this drilling will commence as soon as the merger between
Sub-Sahara and Chalice is completed. In anticipation of this event, work
has already commenced on site preparation.
Owner's Representative Appointment
Experienced Australian mining executive Mr Steven Chadwick has been
appointed by Chalice as Owner's Representative to oversee the planned
Scoping and Feasibility Studies for the Zara Project, including the lead
up to commencement of these studies.
Mr Chadwick has been involved in the development of numerous gold mines
during an extensive career both as a consultant and in senior management
roles with companies such as Northern Gold, Normandy-Poseidon, PacMin
Mining and St Barbara Mines. More recently, he acted as Owner's
Representative for the feasibility study and design of Barrick Mining's
Tulawaka gold project in Tanzania.
Save this page to your Favourites
TOP STORIES
RIO/CHINALCO DEAL
Now it's Chinalco seeking to amend Rio terms
Thursday , 04 Jun 2009
Sources say any changes would address concerns raised by both Canberra
and Rio Tinto shareholders over the biggest overseas investment by a
Chinese company.
Long haul platinum, in play
Sino Gold and Gold Fields alter China alliance
Stingray Copper's El Pilar similarities with Piedras Verdes mine
stimulate broker analysis
China's Shanxi Province considers coal futures bourse
OZ Minerals failure to get superior offer leaves Minmetals deal to go
ahead
Subscribe to our FREE daily newsletterMore FAST NEWS
GOLD MINE TRADEGY
Harmony death toll now up to 76
SOUTH AFRICAN TJATE PROJECT
Jubilee Platinum progresses project to feasibility
DIAMOND MARKET
De Beers increases diamond output
RIGHTS ISSUE
Lonmin shareholders take up 96% of rights issue
DE-LISTING
South Africa's Mvela in process to de-list from JSE
ORKNEY MINE
Pamodzi's assets in demand
http://www.mineweb.net/mineweb/view/mineweb/en/page674?oid=84371
<http://www.mineweb.net/mineweb/view/mineweb/en/page674?oid=84371&sn=Det
ail> &sn=Detail
----[This List to be used for Eritrea Related News Only]----