Australian mining house buys Bulawayo gold mine

Australian mining house buys Bulawayo gold mine
Published: 03 February 2012 (2560 Views)
PERTH - Gold explorer Eldore Mining has signed an agreement to acquire the Lonely gold mine, in Zimbabwe, for $4.4 million.

The mine, located about 80 kilometres north of Bulawayo in the gold producing Bubi greenstone belt, which has a historical underground production of up to 1.1 million ounces, was the largest single gold producer in the region until its closure in the mid-1990s.

Eldore said on Friday that the acquisition would see the company establish a key strategic landholding within a major gold-producing region, and would allow the company to ultimately join the ranks of the country's gold producers.

The gold explorer said that the potential to restart mining operations, following the completion of due diligence, would be part of the company’s expanded scope to determine the size and scale of operations and exploration prospectivity.

Under the terms of the transaction, Eldore would pay the vendor of the project $2.4 million in cash and a further $2 million in Eldore shares. The shares would be payable in tranches, with the first $1 million worth of shares being paid upon settlement and the second tranche being settled on the first production of 20 kg of gold.

Eldore was currently working on a share placement to raise up to A$1.5 million for general working capital and to complete the due diligence process for the mine acquisition.

A shareholder's meeting would be called to consider the purchase of the Lonely mine, as well as the issue of shares to finance the purchase and the recommissioning programme.

- miningweekly

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Knox Mutizwa wins August Goal of the Month award

by kickoff | 05 November 2018 | 924 Views

BREAKING: Gandawa on the run

by Staff reporter | 05 November 2018 | 1756 Views

Econet cannot distribute Kwese TV content to Zimbabwean viewers

by Staff reporter | 05 November 2018 | 1343 Views

Shoot-out robbers arrested

by Staff reporter | 05 November 2018 | 1375 Views

Mnangagwa ally warns economic saboteurs

by Staff reporter | 05 November 2018 | 1328 Views

Chamisa mobilises supporters for mass protests

by Staff reporter | 05 November 2018 | 1111 Views

LISTEN: Acie Lumumba speaks on how he got paid

by Staff Reporter | 05 November 2018 | 924 Views

Dzamara speak on Zanu-PF fights

by Mandla Ndlovu | 05 November 2018 | 882 Views

Minister Raj Modi Modi donates salary

by Mandla Ndlovu | 05 November 2018 | 759 Views

'I am a Trillionaire' Magaya says

by Mandla Ndlovu | 05 November 2018 | 1193 Views

Supermarkets to be blacklisted over cooking oil

by Mandla Ndlovu | 05 November 2018 | 748 Views

UK army to recruit from Commonwealth

by BBC | 05 November 2018 | 819 Views

Magaya opens up on arrest

by Mandla Ndlovu | 05 November 2018 | 813 Views

Kambarami is still 'Deputy Mayor'

by Mandla Ndlovu | 05 November 2018 | 672 Views

'Import ban must not go beyond December 21'

by Staff reporter | 05 November 2018 | 756 Views

Prophet Magaya puts fresh spin to arrest

by Staff reporter | 05 November 2018 | 768 Views

Chamisa's sign language interpreters get thumps up

by Staff reporter | 05 November 2018 | 757 Views

Mnangagwa to review Mthuli Ncube's 2% tax again

by Staff reporter | 05 November 2018 | 727 Views

Lumumba to be probed by ZAAC?

by Staff reporter | 05 November 2018 | 539 Views

Dzamara speak on ZANU PF fights

by Mandla Ndlovu | 05 November 2018 | 505 Views

Zimbabwe as a new gateway into Africa

by Minister of Finance Prof Mthuli Ncube | 05 November 2018 | 740 Views

Chiwenga's ex-wife looted millions

by Mandla Ndlovu | 05 November 2018 | 1113 Views

We are our own worst enemies

by Mapozho Saruchera | 05 November 2018 | 791 Views

Mnangagwa to deal with unexplained wealth and bank deposits

by Staff reporter | 05 November 2018 | 735 Views

WATCH: Chiwenga talks about Prophet Walter Magaya's lipstick

by Staff reporter | 05 November 2018 | 727 Views

Lumumba Saga takes new twist....War vets bay for Mutsvangwa's blood

by Mandla Ndlovu | 05 November 2018 | 794 Views

Chamisa demands Presidency

by Mandla Ndlovu | 05 November 2018 | 685 Views

Zimbabwean teachers miss out on New Zealand opportunity

by Staff Writer | 05 November 2018 | 628 Views

Zimbabwe to introduce e-provisional driver's exams

by Staff reporter | 05 November 2018 | 674 Views

Zimbabwe to supply water to South Africa

by Staff reporter | 05 November 2018 | 671 Views

Mnangagwa claims that 'good times will soon roll'

by Staff reporter | 05 November 2018 | 638 Views

Zimbabwe as a new gateway into Africa

by Hon. Prof Mthuli Ncube | 05 November 2018 | 734 Views

Chiyangwa appoint Karikoga Kaseke

by Staff reporter | 05 November 2018 | 638 Views

ZCTU demo: Ruling today

by Staff reporter | 05 November 2018 | 593 Views

Missing cop found dead

by Staff reporter | 05 November 2018 | 724 Views

Tagwirei marries long-time girlfriend

by Staff reporter | 05 November 2018 | 1130 Views

Zimbabwe relaxes maternity leave entitlement

by Staff reporter | 05 November 2018 | 684 Views

Zimbabwe to receive drugs, ambulances from India

by Staff reporter | 05 November 2018 | 611 Views