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Zimbabwe : NEW DAWN to sell ZIMBABWE's Oldest Mine to BRITISH company.

TSX-listed New Dawn Mining Corporation (New Dawn), the owner of Falcon Gold Zimbabwe is set to sell its closed Dalny Mine the oldest mine in Zimbabwe in a deal worth $8 million to UK-based African Consolidated Resources (ACR).

ACR which is acquiring Dalny Mine is an AIM-listed junior resource development firm focused on Zimbabwe, Zambia and Mozambique with projects spanning gold, nickel, platinum, copper, phosphate and diamonds.

New Dawn holds nearly 85 percent of the Dalny Mine.

The mining major also owns the entire stakes in four other gold mines in Zimbabwe including Turk and Angelus Mine, the Old Nic Mine and the Camperdown Mine.

Falcon Gold Zimbabwe stated : "Extraordinary general meeting will be held on August 13 to authorise the directors to execute all necessary procedures for the disposal of the assets (along with related liabilities) of Dalny Mine, a division of Falcon Gold Zimbabwe Limited, as contemplated in the memorandum of agreement signed on May 8 2014 with African Consolidated Resources PLC."

Falcon Gold Zimbabwe plan to sell Dalny Mine was on the cards since 2013, when the Kadoma based mine was mothballed because of operational challenges.

Dalny Mine was facing operational issues such as growing labour and power costs, high local royalties, taxes and fees, as well as a damaging and expensive illegal strike by workers in 2013.

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Publication:Mena Report
Geographic Code:6ZIMB
Date:Jul 26, 2014
Words:233
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