Chinese group to pay $80m-plus for Chalice’s Eritrean gold project

By: Matthew Hill TORONTO (miningweekly.com) – Toronto- and Australia-listed Chalice Gold late on Tuesday said it agreed to sell its 60% stake in the Zara gold project in Eritrea to China SFECO Group, a subsidiary of

By: Matthew Hill

TORONTO (miningweekly.com) – Toronto- and Australia-listed Chalice Gold late on Tuesday said it agreed to sell its 60% stake in the Zara gold project in Eritrea to China SFECO Group, a subsidiary of Shanghai Construction Group, for as much as $100-million.
The deal is subject to a due diligence by the State-owned group, to be completed by March 12, Chalice said.
The news sent the Perth-based firm’s shares down 17% on the TSX to close at $0.28 apiece, after having jumped earlier this month when the company said it was in talks to sell Zara.
China SFECO will pay $80-million for Chalice’s share of the mineral resource at the Koka gold deposit, and not more than$20-million for the balance of the area falling within the Zara project.
The deal is subject to approval from Chalice shareholders, SFECO clearing regulatory hurdles in China, as well as other conditions.
Chalice also said it agreed not to solicit or be involved in talks concerning the sale of its shares in Zara until completion of SFECO’s due diligence.
However, the company said the agreement was subject to a “carve out” allowing Chalice’s directors to discharge their fiduciary and statutory duties where there is a superior proposal.
The Perth-based company owns a 60% stake in the Zara project, which includes the Koka deposit that has an 840 000 oz gold resource.
The company earlier this year agreed to sell a 30% stake in Zara to the Eritrean government for $32-million. The State-owned miner Enamco also gets a 10% free carried interest.
The UN last week handed down further sanctions to Eritrea’s government, which other African States accuse of assisting the militant antigovernment al Shabaab movement, in Somalia, which the country has denied.
The sanctions, watered down from the harsher ones Gabon and Nigeria first proposed in a draft resolution in October, expanded two-year-old asset-freezing measures and a travel ban on Eritrean individuals and entities, and required countries to make their companies involved in mining in Eritrea exercise “vigilance” to ensure funds from the sector are not used to destabilise the region.
The steps passed two years ago also included an arms embargo.
Chalice said it would still own other Eritrean prospects following the sale of Zara, including a land package immediately north of Toronto-listed peer Nevsun Resource’s Bisha mine.

Edited by: Creamer Media Reporter

MiningWeekly

aseye.asena@gmail.com

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15 COMMENTS
  • MEHRETU HABTE December 29, 2011

    ህግደፍ ከም ሓንቲ ክቡር ዝዋግኣ ኣመንዝራ (high class hoer) እዩ። ነገራት ክዝሕል ከሎ ፍርቂ ዋጋ ንኽትቅበል ንድሕሪት ዘይትብል።እዚ ኣብ ኣህጉራዊ (international) መድረኽ ተርእዮ ጠባይ እዩ። ኣባና፣ ኣብዞም brain dead ዝኾንና ህዝባ ግን ከም መዓረስ (pimp)እያ ትሕይል። ሓንሳእ ስለ ዘጃጀወትና። ከም እሙን ከልቢ፣ ክንዲ ነቲ ዝቕጥቅጦ ዋንኡ ዝነክስ፣ ነቲ ቡንን ሽኮርን ዘሕልፈሉ ሕያዋይ ሳምራዊ ዝምንጭት። ናይ CHINA,IRAN,CANADA,FRENCH,ማሕበር ዕዳጋ ክትገብር ትኽእልያ። ምኽንያቱ ፣ ሙዳዳ/ህግደፍ፣ ንኤርትራ ከም መመንዘሪ ገዛ (hooker house) ንዓና ድማ ከም ርካሽ ኣመንዝራታት cheap hookers እያ ትቖጽረና። ሲናይ ኩሊትና ኣሻይጣ፣ ንህዝብና ፣ ዓጸባ ዝለኸፈን ጠንቂ ሕማም ዝኾና ኣባጊዕ መደርበዪ ትጥቀመልና።ንሙዳዳ/ሻዕብያ/ህግሕኤ ይጸርፋ ኣይኮንኩን ዘለኹ። ነ 40 ++++ ዓመታት ብፈትሊ ንእሰር በትክታት ንሕና ኢና። continues

  • MEHRETU HABTE December 29, 2011

    ድሓር ክኣ ሻዕብያ ናይ ህዝቢ ቃልሲ ከም ዝነበረ፣ ግን ሕጂ ብህግደፍ ከም ዝተጨውየ ንሰብኽ፣ ኣብ ክንዲ ሓንጎል ርኳን (ርኳን ይብል ባባ ኢሳያስ) ዝተሰኵዓና ደንቍርና፣ ሰብ ነደንቍር፣ሰባት፣ ካብ እንቋቝሖ ተመን ርግቢ ዝጽበ፣ ዕደ (ዕደ ይብሉ ደቂ ግራተይ ) ጥራይ እዩ። ኣልቓይዳ፣ ብኣልሸባብ፣ ተተኪኣ ማለት እቲ ቓልሲ ተጨውዩ ማለት ኣይኮነን። ሓንቲ ምዓልቲ ዘይተጋደለ፣ እንታይ ይብለና ከይትብሉኒ !!!!ናይ ብረት ሒዝካ ኮለል ምባል ኣይኮነን። ብብሩህ ልቢ ክትርእዮ ኣለካ። ድሕራይ ክኣ ስድራይ ከዕብዩኻ ኣለዎም። ናይ auntie jemima ዘይበሰለ ጣይታ እናበላዕካ፣ ናይ እኒ ፍሒራ ደርፊ እናሰማዕካ ምጵእ…ምጵእ
    ምባል ንህዝቢ ኤርትራ ኣየርብሖንዩ። ምኽሪ ሓደ ሓደ ኣሕዋተይን ደቂ ዓደይን/ኣውራጃይን፣ ጉሓፍ ናይ ዓድኻ ስለ ዝኾነ ኣይትካላኸለሉን ኢኻ። ነውራጃና ዝጠቕማ እንተዝኸውን፣ ኣነ´ውን ምናልባሽ መጥቅዓኒ። continues

  • MEHRETU HABTE December 29, 2011

    እዞም ወስላታት ብደምካ ተጻዊቶምዮም። ኣነ´ውን ዝፈትዎ ዓርከይን ሓወይን ፣ ወዲ ጉራዕ፣ ደዊሉ እሂ ወዲ ሓማ ጭደድ ክብለኒ ከሎ፣ ንሓደ ደቒቕ ፍናን ይስምዓኒ እሞ፣ ድሓር ብነብሰይ ስሒቐ፣ ሓቢርና ንዋዘ። ብቑዕ ወዲ ካልእ ኣውራጃን፣ ሃይማኖትን ከሎ፣ ነቲ ዘይበቅዕ ወዲ ግራተይ ከዳሉ ግን ነቦይን ነደይን ትምህርቲ ኣንዒቐዮ ማለትዩ። “እዚ ወደይ እቲ ሰብ እዩ ዓርክኻ እምበር ፣ ዓዱ ኣይኮነን”። ነዛ ምኽሪ እ3ዚ ኣ ነቶ እንዳያይ ዘስም ዓለይ ሰብ እንተዝህሉ ግርም ኔሩ። ብ ኣውራጃይ ሽም ገበን ክገብር ኣይከፍቅደሉን´የ። ምስ እቶም ቡርቱዓት ተቓወምቱን፣ ናይ ቀደም ተኣመንቱን፣ ሓኪም ዘየሕውዮ ሕማም ዘለዎምን ኮይነ ከይቃለስ ግን፣ ኣብ ታሕታይ ገዛ (basement of house ) ኮይኖም፣ ኢሳያስ ደቂ ዓድና ቀቲሉ እናበሉ ፣ ኣብ መድረኽ ዘይዛረብዎ፣ ናይ ውሽጢ ኣጀንዳ ዘለዎም ጸበብቲ ኮይነ ግን ኣይጭፍርን። ። !!!continues

  • MEHRETU HABTE December 29, 2011

    ……..መሰሎም ክሕለወሎም ግን ኣዕዚዘ፣ ከምቲ ቅድሚ ሕጂ ዝተመለሰለይ “ንሱ ናህና ጉዳይ እዩ ኣይትሻቐል”ክሳዕ ዝብሃል፣ ንመሰሎም ክሕለቐሎም እየ ። ምኽንያቱ እንቋዕ ደኣ ነዚ ወገን/ሃይማኖት እዚስ ዝብል፣ ንነብሱ እዩ ዝፈርደላ ። ንጀብሃ ንኹናማ ንሃይማኖት ምስልምና ተኸተልቲ፣ ጴንጤ፣ ናይ ዮሆዋ መሰኻኽር፣ ንኣካለ ስንኩላን ፣ ንድሩዕ ንሽሪፎ …….. ወዘተ ክበጽሖም እንከሎ ኣእዳውና ሒዝና ናይ ስቕታ ሓገዝ ጌርና ። ሕጂ ንኹላትና በጺሓትና !!!
    መፍትሒኡ
    1) መንነትካ ብትኽክል ምፍላጥ
    2) ሰብ ንዝደለዮ ኣምላኽ ኣይኮነን፣ ነታ ጣውላ ናይ ሳሎን ውን ከምልኽ መሰል ኣለዎ
    3) ቅድሚ ንሓደ ብደም ዝጠልቀየ ሃገር ንህዝቢ ሓልዮት ክህልወና ይግብኦ ……continues

  • MEHRETU HABTE December 29, 2011

    4) ሃገር ናይ ለባምን ዓሻን፣ ናይ ዝተማህረ(ዘዋር ታክሲን ) ፣ ናይ ዘይተማህረን፣ ናይ ወገናዊን ፣ ናይ ጠርናፊን ፣ ናይ ቅዱስን ሓጥያተኛን፣ ናይ ትፈትዎ ሰብን ፣ ወረዳን፣ ኣውራጃን፣ ከምኡ ውን ናይ ጸቢብ ወገናዊ ናይ ኩሉ እዩ። ንኹሉ ሰብ መሰል፣ ብጀካ ንዓዲ እከለ ዝብሃል ነገር የለን። ወይ ጠኒሳ እያ ወይ ኣይጠነሰትን፣ ቁሩብ እያ ጠኒሳ ዝብሃል ነገር የለን።
    5) መታሕት ብዓረብ ይዛረቡ፣ ከበሳ ብእብራይስጢ ወይ ሲንጋፖርያን ይዛረቡ፣ ናይቶም ህዝቢ መሰል እዩ።
    6) ጀበርቲ ብሄር ኮይኖም፣ እንታይ የሕብጠካ፣ ኣንኳይ ብታሪኽ ደጊፍዎም ዘምጽእዎ ነገር ገዲፉስ፣ ዋላ ካብ ጁቡኦም የውጽእዎ፣ ንዓኻ ኣይምልከትንዩ።
    7)5) ደርግ እንዳለው ደግሞ፣ በጩኸት የፈረሰች ኣገር ብትኖር የመጽሃፍ ቁዱስዋ ያሪኮ ብቻ ነች።ተባበር ንቃ ተደራጅ ታጠቅ። ወይም ይቅርብህ !!!! FINE

    • Huluf December 30, 2011

      Mehretu HABTE,

      What is amazing is all this noise is for $80 MM USD. Whit is it good money do not get me wrong…but it is shocking to see how people are leated with such news…
      Quesiton is why is Chalice bailing out..Is it months from now this sanction could be severe.

      • MEHRETU HABTE December 30, 2011

        Huluf,
        If I understand you right ,you want people to be active than reacting to every silly situation. That is exactly what I am trying to do.Hatred & other negative emotions are leading as opposed to sober results.

  • Abdi December 30, 2011

    According to the campany’s chairman,on completion of the sale,Chalice would be ideally placed to identify acquire and develop resources which could offer investors substantial leverage growth prospects,this is an extremely strong position that would enable the company to take a full advantage of growth opportunities.in addition to its mogoraib projects that will commence drilling in the first quarter of 2012.
    The real question is,”what/how the sadistic assenawoch will benefit from such news?!!”.

  • demisse December 30, 2011

    I taught our “hero’s” believe in SELF RELIANCE”. And here I read the companies doing business as if there is no third party i e higdef. Tey don’t even consider Higdef exists. that is the result of being weak. Higdefs muscle flexes only on poor Eritreans and some times on little Djubuti.

    • Abdi December 30, 2011

      ENAMCO(HGDEF),holds 40% of the project and every deal has to be agreed for by HGDEF,in this case HGDEF approved the transfer to the Chinese company.
      Tell me what this has to do with self reliance?

      • Semhar December 30, 2011

        Self reliance means to do it yourself while higdef is giving it to China.

        The reason Canadian company is leaving Eritrea is because HIGDEF refused to implement constitution, would release political prisoners and is not willing in interfering neighboring countries.

        • Semhar December 30, 2011

          Self-reliance means to do it yourself while higdef is giving it to China.
          The reason Canadian company is leaving Eritrea is because HIGDEF refused to implement constitution, would release political prisoners and is not willing to stop interfering in neighboring countries.

  • Freeprisoners December 30, 2011

    Well, the case is the poletical. China people have no freedom but they are creator, i wish them freedom and democracy. However i hate them to come to our country, because their teaching is all dictatorial. Of course for the workers in general it will be worse. The only solution is, the people of Eritrea we need to take real action to release all the slaved brothers and sisters in that industry. Transfering to the China company’s because, these company are doing illigal in our land. The Eritrea people are not allowed them to work here either. But they are playing without land and using our problems to collect our wealth. This is poletical, chisse companies should be alarmed at least.

  • Semira December 30, 2011

    Guys isn’t it great to hear western company leaving and china company stepping in. I like that because chine doesn’t give a damn about what the security council is talking about, all they care is how they make their money and that’s good for them and good for the Eritrean people. it’s about time we understand opposing the government doesn’t meaning starving the Eritrean people. The security council is not trying to hurt the government but the people of Eritrea. we need to know what is good to bring change in eritrea but atleast one thing i know is not by going and helping the agame against Eritrea.

  • Haile January 1, 2012

    We don’t need Chinese business. Filthy people.

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