ElDore to acquire African gold mine

THE BOURSE WHISPERER: Perth-based gold explorer ElDore Mining Corporation has signed an agreement for a major gold mine acquisition in Zimbabwe that the company claims will establish a key strategic landholding within a major gold producing region and ultimately result in it joining the ranks of the country’s gold producers.

ElDore has agreed to acquire the Lonely gold mine, located in Zimbabwe for an equivalent total consideration of US$4.4 million.

 

Zimbabwe – Lonely gold mine location map. Source: Company announcement

 

The company has executed a Heads of Agreement with the vendors to acquire a 100 per cent interest in the Lonely Mine, subject to due diligence, regulatory and shareholder approval.

The Lonely Mine is located 80km north of Bulawayo and has some pedigree with historical underground production of up to greater than 1.1 million ounces of gold.

“The Lonely Mine was the largest single gold producer in the region until its closure in the mid-1990s,” ElDore Mining Corporation said in its ASX announcement.

“The potential for recommencement of operations following completion of due diligence will be part of the company’s expanded scope to determine the size and scale of operations and exploration prospectivity.

“The mine is located within the Bubi greenstone belt, which is a major gold producing region in Zimbabwe.”

This agreement is subject to due diligence, which ElDore said it will conducting over the next 60 days.

The company will also be seeking to obtain shareholder and regulatory approval.