HomeBusinessFalgold shareholders approve disposal of Dalny Mine

Falgold shareholders approve disposal of Dalny Mine


BULAWAYO – Shareholders of junior gold miner Falcon Gold Zimbabwe have approved the disposal of mothballed Dalny Mine to London-based African Consolidated Resources (AFCR) for $8 million.

The shareholders, who attended the brief extraordinary meeting in Bulawayo on Wednesday, unanimously voted for the sale of the mine situated near Kadoma, a company spokesperson told The Source after the meeting.

“All the shareholders who were present agreed to the sale of the mine,” the spokesperson said.

Falgold and AFCR reached a conditional agreement for the sale, and AFCR sought to rise over $20 million through a mixture of debt and equity to restart the mine and also begin production at its two flagship projects, Pickstone-Peerless Gold Project and its Gadzema Gold Project which are proximal to Daly.

Dalny and its assets will be sold for $8 million, with the net cash consideration after the execution of the terms and conditions of the transaction at about $2,5 million.

Falgold, which is 84,7% owned by Canadian-listed New Dawn Mining Corporation, closed Dalny in August last year and placed it under care and maintenance citing liquidity problems triggered by falling gold prices and operational challenges such as high power costs.

The mine placed its over 900 workers on unpaid leave.

– The Source

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