Australian mining house buys Bulawayo gold mine

Australian mining house buys Bulawayo gold mine
Published: 03 February 2012 (2628 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

MDC slams RBZ currency moves

by ZimLive | 21 February 2019 | 86 Views

Employers not worried by bond notes, RTGS devaluation

by Staff reporter | 21 February 2019 | 80 Views

Monetary policy, a huge leap towards safety

by Staff reporter | 21 February 2019 | 83 Views

Mangudya's retreat to safety is timely.....

by Staff reporter | 21 February 2019 | 76 Views

Zanu-PF School of Ideology to open provincial schools

by Staff reporter | 21 February 2019 | 79 Views

Damnatio memoriae and Robert Gabriel Mugabe National Youth Day?

by Brian Maregedze | 21 February 2019 | 80 Views

Woman scalds daughter with boiling water

by Staff reporter | 21 February 2019 | 77 Views

Fare thee well dear Comrade Callistus Dingiswayo Ndlovu

by Nomazulu Thata | 21 February 2019 | 74 Views

Man to pay $1,000 for killing antelope

by Staff reporter | 21 February 2019 | 76 Views

Teacher cracks pupil's forehead

by Staff reporter | 21 February 2019 | 80 Views

Pupils injured in classroom collapse

by Staff reporter | 21 February 2019 | 77 Views

Cleansing ceremony for Battlefields mines

by Staff reporter | 21 February 2019 | 43 Views

Zanu-PF ups campaigns in Chitungwiza

by Staff reporter | 21 February 2019 | 76 Views

Eddie Cross hails Monetary Policy Statement

by Staff reporter | 21 February 2019 | 81 Views

Chicken 'thief' electrocuted

by Staff reporter | 21 February 2019 | 71 Views

Black market forex rate remains stable

by Staff reporter | 21 February 2019 | 83 Views

Bribe bid kombi crew arrested

by Staff reporter | 21 February 2019 | 67 Views

Banking sector profits jump 61%

by Staff repprter | 21 February 2019 | 73 Views

Willing recolonisation will forever be the hallmark of MDC-Alliance

by Isdore Guvamombe | 21 February 2019 | 71 Views

Zimbabwe to sign air service pacts with Oman, Sri Lanka

by Staff reporter | 21 February 2019 | 71 Views

Diaspora remittances drop

by Staff reporter | 21 February 2019 | 65 Views

Mthuli Ncube declares war on inflation

by Staff reporter | 21 February 2019 | 65 Views

Zimbabwe Communist Party statement on Monetary Policy

by ZCP | 21 February 2019 | 119 Views

MDC officials abducted

by Staff reporter | 21 February 2019 | 131 Views

'Police raided my groceries'

by Staff reporter | 21 February 2019 | 113 Views

Women haggle over hubby

by Staff reporter | 21 February 2019 | 120 Views

PSL clubs in huge dilemma

by Staff reporter | 21 February 2019 | 113 Views

Mtukudzi family mired in controversy

by Staff reporter | 21 February 2019 | 119 Views

Harare- Beitbridge road dualisation gathers pace

by Staff reporter | 21 February 2019 | 99 Views

Madzibaba in public HIV test

by Staff reporter | 21 February 2019 | 92 Views

Stabbing at school

by Staff reporter | 21 February 2019 | 104 Views

Mthuli Ncube says Zimbabwe's inflation rate is being misread

by Bloomberg | 21 February 2019 | 96 Views

Government shows teachers the middle finger

by Mandla Ndlovu | 21 February 2019 | 110 Views

PHOTOS: Mugabe celebrates birthday

by Mandla Ndlovu | 21 February 2019 | 158 Views

Kirtsy Coventry calls youths for a National Indaba

by Mandla Ndlovu | 21 February 2019 | 108 Views

What will a teacher's strike in Zimbabwe mean

by Staff Reporter | 21 February 2019 | 125 Views

ZimJustice unveils new conditions in order to assist more workers

by ZimJustice Communications Department | 21 February 2019 | 108 Views