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JOHANNESBURG (miningweekly.com) – New Dawn Mining subsidiary Falcon Gold Zimbabwe (Falgold) and African Consolidated Resources (AFCR) have agreed to extend the date for payment of the outstanding $7.5-million related to the proposed sale of Falgold’s Dalny mine, in Zimbabwe, from July 30 to August 15.
This followed the two-week adjournment of a meeting of the Zimbabwe Stock Exchange Listing Committee, and the subsequent postponement of Falgold’s extraordinary general meeting – at which the proposed sale was expected to receive shareholder approval – to August 13.
AFCR said on Tuesday that it would, meanwhile, remain in active discussions regarding the funding of the $18-million needed to acquire the Dalny mine and to bring the company's Pickstone-Peerless gold project, also in Zimbabwe, to fast-tracked production.
The group expected to fund this capital requirement through a mix of debt and equity.
“In any event, the company will require further funding in the third quarter of the year to continue operating as a going concern,” it cautioned.
AFCR and Falgold last month signed a conditional agreement which would see AFCR acquire the Dalny mine for $8.5-million.
Mining Weekly Online reported at the time that the Dalny mine had an operational processing plant and ancillary infrastructure that AFCR believed could serve as a central processing plant for its Pickstone operation.
However, fund adviser SP Angel said in a note to clients last month that it was concerned about grade issues at the Pickstone-Peerless mine, further warning that the cost of mining ore underground at Pickstone-Peerless and the cost of trucking this ore to Dalny could limit margins.