From: Biniam Tekle (biniamt@dehai.org)
Date: Mon May 24 2010 - 07:30:35 EDT
http://www.theaustralian.com.au/business/mining-energy/chalice-raising-capital-for-zara-gold-project/story-e6frg9df-1225870297601
Chalice raising capital for Zara gold project
Sarah-Jane Tasker
From: The Australian
May 24, 2010 12:00AM
EMERGING East African-focused miner Chalice Gold has raised $9.1 million to
purchase the remainder of the Zara gold project it does not already own.
The Australian-listed company is expected to release an announcement today
outlining the capital raising, which was pitched at 42c and strongly
supported by US funds and institutional and sophisticated investor clients
of Southern Cross Equities.
Australian miners have warned of the impact the Rudd government's proposed
resource super-profits tax will have on their ability to tap markets for
funds but as Chalice's project is in Eritrea the company was able to attract
overseas support.
The funds are to be used to enable Chalice to exercise its option to buy
Dragon Mining's 20 per cent interest in the Zara Gold project.
The exercise price is $8 million and 2 million Chalice shares. The emerging
miner will also have to pay Dragon a further $4m when they delineate a 1
million ounce mineable reserve.
Chalice is expected to upgrade the resource for the Koka deposit at the Zara
project, following recent drilling, completion of the feasibility study in
July and commencement of financing.
The company acquired the east African project through its merger last year
with Sub-Sahara Resources.
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