Chalice Gold Mines Limited - Zara Gold Project Sale Consideration
Symbol: ASX: CHN TSX: CXN
Shares outstanding: 250 million
Fully diluted: 258 million
PERTH, Western Australia, April 17, 2012 /PRNewswire/ - Chalice Gold Mines Limited (ASX:CHN) (TSX:CXN) advises that, following completion by the China SFECO Group (SFECO) of its due diligence and further negotiation between the parties, the consideration payable by SFECO for Chalice's 60 per cent interest in the Zara Project, including the area surrounding the Koka Gold deposit, will be US$80 million payable as to US$78 million on settlement and US$2 million on first gold pour.
The agreement remains subject to the approval of the SFECO Board on 26 April 2012 and the conditions previously advised in the Company's announcement to ASX on 28 December 2011 (except the financing letter and due diligence conditions).
Due to various internal Chinese Governmental approvals, completion is now expected mid to late July 2012, although SFECO will use its best endeavours to expedite the approvals process.
Completion of the sale of 60 per cent to SFECO will see the end of Chalice's holding in the Zara Project. Chalice will continue to hold its interests in the Mogoraib North and Hurum exploration licences.
Zhang Lin Fa, the President of SFECO, and Mr Tim Goyder, the Executive Chairman of Chalice said:
"We are delighted to have concluded the commercial terms for the sale by
Chalice of the 60 per cent interest in the Zara Project and look
forward to working together to complete the transaction."
Forward Looking Statements
This document may contain forward-looking information within the meaning of Canadian securities legislation and forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). These forward-looking statements are made as of the date of this document and Chalice Gold Mines Limited (the Company) does not intend, and does not assume any obligation to update these forward-looking statements except as required by law or regulation.
This document may contain forward-looking information within the meaning of Canadian securities legislation and forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). These forward-looking statements are made as of the date of this document and Chalice Gold Mines Limited (the Company) does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law or regulation.
Forward-looking statements relate to future events or future performance and reflect Company management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources, the realization of mineral reserve estimates, the likelihood of exploration success, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage, as well as the possibility that a sale of the Zara Gold Project may be consummated.
In certain cases, forward-looking statements can be identified by the use of words such as plans, expects or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or variations of such words and phrases or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of mineral resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; completion of the sale of the Zara Gold Project to SFECO; the tax payable on any such transaction; completion of the sale of a 30% interest in the Zara Gold Project to the Eritrean National Mining Corporation; the use of any sale proceeds received from the sale of the Zara Gold Project; as well as those factors detailed from time to time in the Company's interim and annual financial statements, all of which are filed and available for review on SEDAR at sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking statements.
SOURCE Chalice Gold Mines Limited