ACR, Falgold agree to extend Dalny mine payment date

Published: 24 July 2014

Zimbabwe-focused multi-commodity resource development company, African Consolidated Resources (ACR) has said it has reached an agreement with Falcon Gold to extend the date for the payment of the outstanding balance for the sale of the latter's Dalny Mine to August 15.

The payment date had been initially set for July 30.

In a recent statement, AIM-listed ACR said the extension had been necessitated by the two-week adjournment of a meeting of the Zimbabwe Stock Exchange Listing Committee, and the subsequent postponement of Falgold's extraordinary general meeting.

"Further to the announcement dated 30 June 2014, ACR, the AIM-listed resources and development company, announces that Falcon Gold Zimbabwe Limited has informed the Company that, following an adjournment by two weeks of a meeting of the Zimbabwe Stock Exchange Listing Committee, the expected date of the Extraordinary General Meeting of Falgold in order to approve the proposed sale of the Dalny Mine and associated infrastructure is now 13 August 2014, with the results expected to be published on 15 August 2014.

"In order to accommodate the new date of the Falgold EGM, Falgold has requested and ACR has agreed to extend the date for payment of the outstanding consideration (being a net cost of $7,5 million) from 30 July 2014 to 15 August 2014," said ACR.

ACR and Falgold last month signed a conditional agreement which would see ACR acquire the Dalny mine for $8,5 million.

ACR also said it is continuing with "active discussions" with regards to accessing funding for its targeted key projects.

"The Company remains in active discussions concerning the funding of approximately US$18 million, the funding necessary to acquire the Dalny Mine and to bring the Company's Pickstone Peerless Gold Project in Zimbabwe to fast tracked production, and which is anticipated to be by way of a mix of debt and equity," it said.
- BH24