HomeNewsAustralian miner angles for gold interests in Zim

Australian miner angles for gold interests in Zim

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Cape Range Limited, says it is still interested in acquiring 90% of Ox Mining (Pvt) Ltd, one of Zimbabwe’s foreign gold mining companies with concessions around Kadoma, after an initial drilling programme in the area produced encouraging results.
The Australian-based resources company has signed an option agreement to acquire up to 90% of Ox Mining and take over its various gold mining projects in Kadoma, including the Kadoma gold project.
In February, Cape Range announced it had signed a contract with Ox Drilling, a drilling contractor based in Zambia to commence work at the Kadoma gold project.
The equipment has already been moved to the site from Ndola, in Zambia and work commenced in February.
In an update yesterday, the ASX-listed company said drilling at the gold project had been scaled down with mutual agreement with Ox Mining to allow the parties to conclude their option agreement, which has been extended.
Managing director, Joe Cornelius, says the drilling results were encouraging and had given the company enough reason to carry out further tests on the gold zones with a high potential for high-grade deposits.
The programme will also cover diamonds.
Cape Range’s option agreement with Ox Mining gives it a number of equity acquisition options largely based on cash payments.
Firstly, it can begin by buying 10% at $1,5 million, which would be spread over six months.
The second option allows the acquirer to pay $2m for a 41% equity interest after a due diligence to be done over six months. Alternatively, Cape Range could offer Ox Mining shares equivalent to $6m.
At this stage, Cape Range would also commit $2m for the underground development of Ox Mining’s Inez Mine.
After this stage, Cape Range is entitled to bulk up by a further 39%, which would be paid for through a mix of equity and cash.

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