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From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Fri Feb 18 2011 - 08:12:49 EST
Chalice Gold advances discussions on ENAMCO's acquisition of 30% of the Zara
project
Friday , 18 Feb 2011
Highlights:
* Chalice continues to progress commercial discussions with ENAMCO to
agree the terms and purchase price for the acquisition of their 30% paid
participating interest in the Zara Project
* The project permitting process, including negotiation of the Mining
Agreement, is also proceeding as expected
Chalice Gold Mines (ASX: CHN)(TSX: CXN) is pleased to report that commercial
discussions with ENAMCO (the Eritrean National Mining Corporation) to agree
the purchase price for their 30% paid participating interest in the Zara
Project are proceeding satisfactorily.
Both Chalice and ENAMCO are hopeful that an agreement on the fair value of
the interest can be mutually agreed between the parties. If the parties
cannot agree, then an independent valuation will be undertaken.
If, as Chalice currently expects, ENAMCO agrees to pay for their paid
participating interest shortly after grant of the Mining Licence, the
funding task for Chalice to develop the Koka Gold Deposit will be
substantially reduced.
The amount of funding that Chalice may need to source externally will be
further reduced by ENAMCO's progressive contribution to development costs
(which will be funded 33.33% by ENAMCO and 66.66% by Chalice).
The project permitting process is also proceeding as expected. Chalice is
currently negotiating the terms of the Mining Agreement, which, along with
the Mining Licence and the Eritrean Mining Proclamation, will govern all of
the rights and obligations of the Eritrean operating company relating to the
development and operation of the Zara Project.
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