AFCR, Falgold cancel Dalny deal
JOHANNESBURG (miningweekly.com) – Aim-listed African Consolidated Resources’ (AFCR’s) acquisition of the Dalny mine, from Falcon Gold Zimbabwe (Falgold), has fallen through, as the company was unable to raise funding for the deal.
AFCR had been trying to raise $12-million required as a precondition to acquiring the Zimbabwe-based mine and associated infrastructure.
Following the termination of the agreement, AFCR would be refunded $500 000 of its initial $1-million initial payment to Falgold.
Meanwhile, the company also announced on Tuesday that it had, in principle, secured joint venture (JV) finance that would enable it, along with a local partner, to start mining at the Pickstone-Peerless gold mine, also in Zimbabwe.
In terms of the proposed deal, AFCR would transfer its interest in Pickstone-Peerless, as well as the Gadzema project, to a new company over which AFCR would have management control.
The local partner would contribute $4-million to gain a 50% interest in the new company.
AFCR expected the funding to enable the start of production at Pickstone-Peerless within eight months.
The local partner had also agreed to extend a $2-million loan facility to AFCR.
The Aim-listed company cautioned that, should it not secure any other financing, it would require the formal signing of the loan agreement with the local partner in the “very near term” to enable AFCR to continue as a going concern.
“Raising new investment finance for Zimbabwe has proved extremely difficult and I am very pleased to have secured funding in principle on a JV basis with a view to commencing production at Pickstone-Peerless,” commented AFCR CEO Roy Pitchford.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
