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.
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.
A conditional agreement with New Dawn Mining subsidiary Falcon Gold Zimbabwe to acquire the Dalny mine, in Zimbabwe, for $8.
AFCR highlighted that the Dalny mine had an operational processing plant and ancillary infrastructure that could serve as a central processing plant for its Pickstone operation.
In additional, incorporating Dalny into the company s internal financial model, generated a net present value of $76-million over a 19-year mine life, with cash costs and all-in costs of $701/oz and $855/oz respectively over the mine life.