Canadian company to acquire Gaika, Athens mines

A Canadian company which is listed on the Toronto Stock Exchange, Mandorin Goldfields Inc., is planning to acquire a number of small gold mines in Kwekwe, Mvuma and Bulawayo.

The chief executive officer of the company Errol Smart, however, said it was premature to comment on the acquisitions because they were preparing submissions to the regulatory authorities in respect of the proposed acquisitions.

He, however, referred The Insider to various press releases on the company’s website.

The latest press release, published last month, says Mandorin had entered into an agreement with Duration Gold Limited (DGL)to acquire 100 percent of its interest in its gold projects in Zimbabwe.

The mines, which are owned by Duration Investments (Pvt) Ltd (DIPL) include Gaika, Athens, Umvinga, Durban, Sunace and Queens. The deal will also involve a 65 percent stake in the Hope Fountain group of mines and prospects and a 49 percent interest in Casmyn which operates Peter Pan, Sandy and Tiberius Mines.

The press release said DIPL had been mining in Zimbabwe for 50 years and had a well-established management and operations team which was headed by John Muir, who had managed the business for more than 20 years. Muir would enter into a management contract with DIPL as part of the acquisition.

The agreement provides for DGL to acquire the shares of DIPL and all rights to shareholder loans for 1.7million pounds sterling payable in DGL shares.

The press release said Mandorin believed this was an opportune time to acquire Duration Projects because of the recent revival of gold mining operations and a more favourable mining investment and fiscal environment in Zimbabwe as these were key to restoring the country to prosperity.

“However, Mandorin recognises that local participation will be essential in the development and operation of the mines and is actively engaged in discussions with very supportive local interests and government departments and agencies,” the press release said.

Smart, who is based in South Africa, said the proposed acquisition was a major step in the development of Mandorin as a serious participant in the gold mining industry.

“In my opinion, Zimbabwe holds some of the most geologically prospective ground I have encountered anywhere in Africa and I am excited to introduce Mandorin, through Duration Gold, as a substantial participant in this terrain,” he said in the press release.

“This acquisition complements the company’s interest in Klipwal Gold Project in South Africa and provides the company with a substantial operating base from which to grow and diversify.”

Smart, who has worked in Zimbabwe, was technical director of Metallon Gold one of the largest gold mining companies in the country.

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