RioZim takes over Falgold subsidiary

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