African Consolidated Resources, the AIM listed resources and development company, has signed a conditional agreement with Falcon Gold Zimbabwe to purchase the Dalny Mine, which is proximal to both its flagship Pickstone-Peerless Gold Project and its Gadzema Gold Project in Zimbabwe, for a net cost of US$8.5 million.
AFCR intends to raise approximately US$18 million though a mixture of debt and equity in order to bring Pickstone into production, finance the acquisition of Dalny and support general corporate purposes.
Roy Pitchford, Chief Executive Officer, said “This is a potential game-changer for AFCR with considerable blue-sky opportunities. We have already identified a high grade, low cost gold resource at Pickstone and I am encouraged by our low-risk profile due to the low cost of production and conservative mining methods. Subject to financing and completion, this acquisition will further enhance the already attractive economics of Pickstone, and strengthen our existing platform so that AFCR can play a meaningful role in the resurgence of the Zimbabwean gold sector.”