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From: B-Haile (eritrea.lave@comhem.se)
Date: Thu Feb 17 2011 - 23:21:23 EST
ASX Announcement
Chalice Advances Discussions on ENAMCO's Acquisition of 30% of the Zara Project
Chalice Gold Mines Limited ABN 47 116 648 956 16
February 2011
ASX Announcement
18/02/2011
Chalice Advances Discussions on ENAMCO's Acquisition of 30% of the Zara Project
Chalice Gold Mines Limited ABN 47 116 648 956 16
February 2011
Highlights:
- Chalice continues to progress commercial discussions with ENAMCO to agree the terms and purchase price for the acquisition of their 30% paid participating interest in the Zara Project
- The project permitting process, including negotiation of the Mining Agreement, is also proceeding as expected
Chalice Gold Mines (ASX: CHN)(TSX: CXN) is pleased to report that commercial discussions with ENAMCO (the Eritrean National Mining Corporation) to agree the purchase price for their 30% paid participating interest in the Zara Project are proceeding satisfactorily.
Both Chalice and ENAMCO are hopeful that an agreement on the fair value of the interest can be mutually agreed between the parties. If the parties cannot agree, then an independent valuation will be undertaken. If, as Chalice currently expects, ENAMCO agrees to pay for their paid participating interest shortly after grant of the Mining Licence, the funding task for Chalice to develop the Koka Gold Deposit will be substantially reduced.
The amount of funding that Chalice may need to source externally will be further reduced by ENAMCO's progressive contribution to development costs (which will be funded 33.33% by ENAMCO and 66.66% by Chalice).
The project permitting process is also proceeding as expected. Chalice is currently negotiating the terms of the Mining Agreement, which, along with the Mining Licence and the Eritrean Mining Proclamation, will govern all of the rights and obligations of the Eritrean operating company relating to the development and operation of the Zara Project.
DR DOUG JONES
Managing Director
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