Chalice Gold to sell remaining 60% of gold project in Eritrea for $80m
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http://mineralsandmaterials.energy-business-review.com/archive/4294920035>
EBR Staff Writer Published 04 January 2012
Chalice Gold Mines has entered into a short term agreement to sell the
remaining 60% of its Zara gold project in Eritrea to China SFECO Group for
$80m in cash.
This follows the agreement in July 2011 to which Chalice agreed to sell a
30% interest in the Zara Project to the Eritrean National Mining
Corporation.
In addition a 10% carried interest in the project already held by ENAMCO.
SFECO will pay Chalice a further sum not to exceed $20m for the balance of
the area falling within the Zara Project.
The Agreement with SFECO is subject to SFECO being satisfied with its due
diligence which must be completed by 12March of this year.
SFECO procuring a letter indicating suitable financing by completion of due
diligence and
completion of the sale of the 30% interest by Chalice to ENAMCO for $32m
plus approximately $2m for the reimbursement of certain costs.
Assuming completion of the Transaction Chalice would be liable to pay tax to
the Eritrean Government on the SFECO and ENAMCO proceeds at a rate of 38%.
This will be calculated after deducting the Company's share of project to
date costs of at least $30m.
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Received on Wed Jan 04 2012 - 16:32:59 EST
