Canadian mining firm Conquest Resources Ltd has sold its Zimbabwe interests in a deal aimed at helping revive the two companies which have not been operational since 2003.
Conquest indirectly owned Africa Gold and Baobab Minerals, but recently transferred control of the companies to Mayfair Mining and Minerals in return for a 36,4% interest in the United Kingdom-based company.
In a statement issued last week, the company said: “The consideration for these assets was 20 million fully paid common shares in the capital of Mayfair having a contractual value of $2 million and representing approximately 36,4% of Mayfair’s current issued capital.
“Mayfair has covenanted in the purchase and sale agreement to obtain a listing of its shares on a recognised stock exchange or automated quotation system in Canada, the United Kingdom or the United States and to raise a minimum of CAN$500 000 within six months of closing.”
Chief executive Terence McKillen added: “We are pleased that Mayfair will be reactivating these non-core assets and believe that Mayfair’s management team has the vision and the expertise to develop these and other gold assets in Zimbabwe which will maximise the return to Conquest in due course.
“Conquest will continue to focus exclusively on gold exploration in Canada, but is retaining its interest in Africa through its equity participation in Mayfair.”
A number of mining groups either completely suspended operations or scaled back to care and maintenance over the last decade as the country was buffeted by a serious political and economic crisis while some commodity prices took a knock on the world market.
However, the establishment of the coalition government in 2009 and a raft of economic reform measures that included the suspension of the Zimbabwe dollar in preference for more stable foreign currencies helped improve the local operating environment.
Most mining companies have since resumed operations taking advantage of a more stable local environment and soaring gold prices on the back of mounting concerns over the US economy and the European Union’s public debt.