Caledonia accepts offer for Eersteling Gold Mine
by Jo Black

Caledonia Mining Corporation has accepted an offer for the purchase of the entire issued share capital of Eersteling Gold Mining Company Limited (Eersteling) in South Africa by a private Canadian company for C$3.81 million.
The offer is to be settled in cash on or before July 31, 2008 and a refundable deposit of C$0.4 million is to be placed in trust upon signing of the final agreements by no later than March 31, 2008. The offer is subject to the approval of the Board of Directors of both parties. A non-refundable break fee of C$131,000 will be paid to Caledonia by March 8, 2008. In addition, the monthly running costs of Eersteling of approximately C$8,000 will be paid in advance to Caledonia from 3 March 2008, until completion of the transaction.
Eersteling is a wholly owned subsidiary of Caledonia and includes the assets & liabilities of the Eersteling Gold Mine, located in the Limpopo province of South Africa. The mine has been on care and maintenance since 1997. As at September 30, 2007 Eersteling had a carrying value of C$1.03 million on the Caledonia balance sheet and, in the nine month period ended September 30, 2007, generated losses of C$0.1 million.
The sale of Eersteling will enable Caledonia’s management to focus on the development of the Nama Cobalt Project in Zambia and on the producing Blanket gold mine in Zimbabwe.
Add to Bookmarks:
Related posts to: Caledonia accepts offer for Eersteling Gold Mine
Caledonia and Mitsubishi sign agreement ...
Khan Resources reaffirms offer for Western Prospector Group ...
Closer of offer for Midwest ...
Kinross announces friendly combination with Aurelian ...
Gold, copper prices rise ...
Latest Metals News:
Copper up in London; inventories fall, cancelled warrants rise
Copper gains on US jobs data, China comments
Copper up on weaker dollar
Copper prices climb after Chile quake
Metals prices mixed in New York, London
Gold down slightly in NY on stronger dollar
Copper prices up after last week’s declines
Copper, other metals continue price declines
Copper in big declines on economic concerns
Copper, other metals gain againPrevious: « Bonaventure launches winter drill campaign at K9
Next: Mexico remains a hot destination for foreign miners »
Visited 2405 times, 1 so far today