Chalice Gold Mines has bedded down the sale of its 60 per cent stake in the
Zara gold project in Eritrea but got $20 million less for the asset than
originally agreed.
Following due diligence by the buyer, China SFECO Group, and negotiations
between the two parties, the agreed price for the Zara stake and the area
surrounding the Koka gold deposit will be $US80 million, rather than $US100
million as originally agreed back in December.
SFECO will pay $US78 million on settlement, expected in late July, and $US2
million on the first gold pour.
The agreement is still subject to approval by SFECO's board on Thursday,
April 26, various other Chinese government approvals and other conditions
previously outlined.
In a joint statement, Chalice executive chairman Tim Goyder and SFECO
president Zhang Lin Fa said they were delighted to have completed
negotiations and agreed upon commercial terms for the transaction.
Investors appeared to welcome the news and disregard the lower sale price,
sending shares in Chalice up 1.5 cents, or 6.38 per cent, to 25 cents at
12.25pm.
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Received on Wed Apr 18 2012 - 10:24:49 EDT
