Zimbabwe approves RioZim takeover of Falcon Gold’s Dalny Mine

Zimbabwe’s Competition and Tariffs Commission has approved the acquisition of Falcon Gold’s Dalny Mine by RioZim, the two companies have confirmed.

The agreement, which was first announced in October last year, involves the purchase of Falgold subsidiary, Palatial Gold Investments which owns the Dalny Mine Complex, by RioGold, a unit of RioZim.

The complex includes the mine, a gold processing plant, several surrounding gold claims as well as equipment and a mining compound.

Shareholders of the two resources giants approved the takeover early this year.

“Following the unanimous support by the shareholders of RioZim and Falgold, we are pleased to announce the approval of the Transaction by the Competition and Tariff Commission,” said RioZim and Falgold in a joint statement released to the Zimbabwe Stock Exchange.

RioZim says the deal will double its asset value and increase gold output by 100 kilogrammes per month after a year.

For Falgold, which is 84.7 percent owned by Canadian-listed New Dawn Mining Corporation, the deal would raise working capital to renovate the group’s infrastructure and increase production at its remaining operations at Turk Mine near Bulawayo and the Golden Quarry Mine in Shurugwi. – The Source

(48 VIEWS)