RioZim takes over Fal­gold sub­sidiary

Chronicle (Zimbabwe) - - Business Chronicle -

ne­go­ti­a­tions be­tween the two com­pa­nies, an agree­ment has been reached for RioGold (pri­vate) Lim­ited, a wholly-owned sub­sidiary of RioZim, to ac­quire 100 per­cent of Fal­gold’s wholly-owned sub­sidiary, Pala­tial Gold In­vest­ments (Pala­tial Gold).”

Pala­tial Gold owns the Dalny Mine Com­plex (DMC), which con­sists of a gold pro­cess­ing plant, equip­ment, min­ing, claims, min­ing in­fra­struc­ture and a mine com­pound.

DMC has been un­der care and main­te­nance since Au­gust 2013.

From March 2015, RioGold has been pro­cess­ing ore mined at its Cam and Mo­tor Mine at the Dalny Mine Gold Pro­cess­ing Plant un­der a lease agree­ment.

“The di­rec­tors of RioZim be­lieve that DMC has at­trac­tive ex­plo­ration ground with po­ten­tial for de­lin­eat­ing re­sources for min­ing,” reads the notice.

It is be­lieved that the ac­qui­si­tion of Pala­tial Gold would con­sol­i­date RioZim’s gold as­sets and out­put un­der RioGold as the ac­qui­si­tion is in line with the group’s strate­gic ini­tia­tive to ex­pand gold min­ing op­er­a­tions.

“On the other hand, the dis­posal of Pala­tial Gold by Fal­gold will al­low Fal­gold to ra­tio­nalise its as­set base and fo­cus on the min­ing ef­forts of the group.

“Both par­ties are in the process of ful­fill­ing the con­di­tions prece­dent to the trans­ac­tion,” it said.

Share­hold­ers and the public were ad­vised that the ac­qui­si­tion was sub­ject to statu­tory, reg­u­la­tory and share­holder ap­provals.

Against this back­ground, share­hold­ers and the public are en­cour­aged to con­tinue ex­er­cis­ing cau­tion and to con­sult their pro­fes­sional ad­vis­ers when deal­ing in the shares of RioZim and Fal­gold.

Fur­ther de­tails on the above trans­ac­tion would be made avail­able in the cir­cu­lars to be pub­lished by the two com­pa­nies in due course. — @okazunga

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