RIOZIM has acquired 100% of Falgold’s wholly-owned subsidiary, Palatial Gold Investments.
BY TARISAI MANDIZHA
“The directors of RioZim Limited (RioZim) and Falcon Gold Zimbabwe (Falgold) are pleased to announce to their shareholders and other stakeholders that, following negotiations between the two companies, an agreement has been reached for RioGold (Private) Limited ,a wholly owned subsidiary of RioZim, to acquire 100% of Falgold’s wholly owned subsidiary, Palatial Gold Investments (Private) Limited,” RioZim and Falcon Gold Zimbabwe said in a statement.
Palatial Gold owns the Dalny Mine Complex (DMC), which consists of a gold processing plant, equipment, mining claims, mining infrastructure and mine compound.
The group said the disposal of Palatial Gold will allow Falgold to rationalise its asset base and focus on the group’s mining efforts.
“Both parties are in the process of fulfilling the conditions precedent to the transaction.
“Shareholders and the public are, therefore, advised that the acquisition is subject to statutory, regulatory and shareholder approvals and, as such, they should continue to exercise caution and to consult their professional advisers when dealing in the shares of RioZim and Falgold,” reads the statement.
According to the statement, DMC has been under care and maintenance since August 2013 from March last year, RioGold has been processing ore mined at its Cam and Motor Mine at the Dalny Mine Gold Processing Plant under a lease agreement.
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However, RioZim directors said DMC has attractive exploration ground with potential for delineating resources for mining.
The group said the acquisition of Palatial Gold is in line with RioZim’s strategic initiative to consolidate gold assets and output under RioGold through mergers or acquisitions in order to expand its gold operations.
Falgold is 84,7% owned by Canadian-listed New Dawn Mining Corporation.
