Kewdale-based Allied Gold Ltd has confirmed its Simberi Oxide Gold project remains on schedule, despite the withdrawl yesterday of a placement offer by Chinese gold giant Zijin Mining Group Co Ltd worth at least $18 million.
Kewdale-based Allied Gold Ltd has confirmed its Simberi Oxide Gold project remains on schedule, despite the withdrawl yesterday of a placement offer by Chinese gold giant Zijin Mining Group Co Ltd worth at least $18 million.
Kewdale-based Allied Gold Ltd has confirmed its Simberi Oxide Gold project remains on schedule, despite the withdrawl yesterday of a placement offer by Chinese gold giant Zijin Mining Group Co Ltd worth at least $18 million.
In an announcement, Allied chairman Mark Caruso said the company had previously secured the $80 million required to construct the project, and that the company was well equipped to commence production on the site in the second half of the 2007 calendar year.
Zijin had agreed to subscribe for 30.2 million shares, or 10 per cent of Allied's issued capital, for a price not lower than 60c per share.
Zijin's decision not to proceed with the arrangement came after the company had committed due dilligence on the deal. Mr Caruso said Allied's directors were unable to determine the reasons for this change of heart, despite its efforts to do so.
Allied shares fell four per cent today to close at 34.5c each, after a fall of 19 per cent yesterday.