Chalice on the hunt after $US114m asset sale

Chalice Gold Mines is cashed up and on the lookout for acquisitions after completing the sale of its Zara gold project in Eritrea to China’s SFECO Group and the Eritrean National Mining Corporation (ENAMCO) for $US114 million.

Chalice announced today that SFECO would take a 70 per cent stake in the project for $US78 million, and a deferred payment of $US2 million, payable upon commencement of commercial production at the Koka Gold mine, also in Eritrea.

ENAMCO paid $US29 million for its 30 per cent stake in Zara.

Chalice chairman Tim Goyder said the company had received all funds and paid all applicable taxes for both transactions, and its cash balance was around $82 million.

He said the transactions marked an exciting new chapter of growth for the company.

“This is a time in the market where cash is king and opportunities abound,” Mr Goyder said.

“We are very pleased to have crystallised significant value for our shareholders from the successful completion of this transaction, and we are now looking forward to identifying and securing new projects that will define the next phase of growth for Chalice.”

At 11:50AM, WST, Chalice stocks were up 4 per cent, trading at 25.5 cents.