Categories: Stories

Falgold sells off majority shareholding in Venice Mine

Resources group Falcon Gold has sold off the majority of its shareholding in Venice Mine near Kadoma to an unnamed investor who will inject $4 million to resume production over a decade after the mine stopped operations.

Executive chairman Ian Sanders said its shareholding in Venice was now at 37.5 percent from 100 percent and that the initial investment into the mine, which was closed in 2002, was made last December.

“In the period under review, the group entered into a Progressive Investment Agreement with an investor with respect to Venice,” Sanders said in a statement accompanying the results today.

“This agreement laid out a process wherein the investor agreed to invest equity finance of at least $4 000 000 over a period of time, and with an additional investment bring Venice back into production.”

Falgold’s loss position remained flat at $1.6 million for the six months to March from prior comparative period despite weakening revenue.

Sales of gold bullion stood at $5.3 million from $6.3 million following the closure of Dalny Mine in 2013 while operating and administration costs decreased.

The group produced 4 527 ounces of gold during the period under review compared to 4 789 ounces in 2013.

The group bemoaned weak prices of bullion on the international market, royalties, unviable energy tariffs and the country’s “rigid” labour laws for affecting operations.

Canada-listed junior miner New Dawn has an 85 percent controlling shareholding in Falgold. The group also owns Turk Mine near Bulawayo.-The Source

(221 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024