ElDore in $US4.4m mine acquisition

Perth-based exploration junior ElDore Mining has announced a major gold mine acquisition in Zimbabwe, that it says paves the way for it to become a significant producer in 2012.

ElDore announced to the ASX today that it had signed an agreement to acquire the Lonely gold mine, located 80 kilometres north of Bulawayo, for cash and scrip considerations of $US4.4 million.

The Lonely mine has historical underground production of up to 1.1 million ounces, and was the largest single gold producer in the region until its closure in the mid-1990s.

“Thec believes that this transaction represents a company-changing event and we are confident that this transaction represents the best strategy to create value,” ElDore said in a statement.

“On completion of this transaction, ElDore will have a cornerstone asset, with the Lonely Gold Mine targeted to come on stream during the year and set up ElDore for a very significant year in 2012.”