PERTH (miningweekly.com) - Gold miner Chalice Gold Mines has completed the sale of its Zara gold project, in Eritrea, to China SFECO Group for $78-million.
Chalice would also receive a deferred payment of $2-million on the start of commercial production at the Koka gold mine.
In April this year, Chalice agreed to sell its 60% interest in the Zara gold project to China SFECO, which agreed on the $80-million selling price, subject to certain conditions.
Meanwhile, Chalice said this week that the Eritrean National Mining Corporation had also settled the remaining balance of the $29-million for its acquisition of a 30% interest in the Zara project, in addition to its 10% free-carried interest.
Executive chairperson Tim Goyder noted that the completion of the Zara transaction marked the beginning of an exciting new chapter of growth for Chalice, with its cash balance at A$82-million putting the company in a unique position to identify and secure quality new opportunities in the international resources sector.
“This is a time in the market when cash is king and opportunities abound,” Goyder said.
“We are very pleased to have crystallized significant value for our shareholders from the successful completion of this transaction, and we are now looking forward to identifying and securing new projects that will define the next phase of growth for Chalice.”
The Zara project contains the Koka deposit, where an 840 000 oz gold resource has been estimated. A feasibility study on the Koka project predicted an average gold production of around 104 000 oz/y for a seven-year mine life.