The Sunday News
MULTI-COMMODITY resources firm African Consolidated Resources (AFCR) says it will commission its first Zimbabwe-based gold producer – the Pickstone-Peerless Mine Project – during the second half of 2015.AFCR seems to have put aside the disappointment of failing to land Falcon Gold’s Dalny mine, with the group having secured “limited” funding for the Pickstone-Peerless project.
In terms of this new funding, AFCR in partnership with Grayfox Investments have established a new fifty-fifty joint venture company Dallaglio Investments.
According to AFCR, Grayfox had the right to exchange its shareholding in Dallaglio for 288 million shares in the group, which would result in it having 100 percent ownership — subject to indigenisation regulations — of the project.
“Funding for the development of the Pickstone-Peerless Mine, albeit at a reduced volume of 10 000 tonnes per month, has been secured from a Zimbabwean source. A new joint venture company Dallaglio Investments (Pvt) Ltd (Dallaglio) has been established whereby AFCR will hold a 50 percent interest in Dallaglio and the joint venture partner, Grayfox Investments (Pvt) Limited (Grayfox) enjoying the other half.
“The joint venture includes the Pickstone-Peerless Mine and the mining claims surrounding the former Giant Mine,” said CEO Mr Roy Pitchford yesterday.
“Mine commissioning is planned for the beginning of H2 2105 with first positive cash flows later in H2 2105.”
Although Dallaglio will run the Pickstone-Peerless Mine project, AFCR announced that future Zimbabwe operations will be administered through the AFCR Zimbabwe holding company – Canape Investments (Pvt) Limited.
Due to the challenges experienced in Zimbabwe, AFCR said it was taking a broader approach in respect of all its projects.
“The specific challenges faced in Zimbabwe and the international status of gold has resulted in the transition process in AFCR incorporating a wider development focus and a more significant presence in Romania,” said Mr Pitchford. To this extent, the company said a loan of $2 million had been secured of which $1 million was received in connection with opportunities in Romania.
The group, however, maintains that the Dalny project can still come through.
“AFCR remains in contact with Falcon Gold Zimbabwe Limited,” said the CEO. – BH24
