Register
Login:
Share:
Email Facebook Twitter

EXCLUSIVE: Ascent CEO Colin Hutchinson with latest on review and permitting Watch Here

EXCLUSIVE: Ascent CEO Colin Hutchinson with latest on review and permitting


Alliance News


Cradle Arc Grants Singa Option To Acquire Zambian Assets

Mon, 16th Apr 2018 13:56


LONDON (Alliance News) - Africa-focused precious metals miner Cradle Arc PLC said on Monday it has entered an option agreement granting Singa Holdings Zambia Pvt Ltd to either form a joint venture, or acquire Cradle Arc subsidiary Luiri Gold Mines Ltd.

Luiri Gold Mines currently holds the Matala and Dunrobin gold assets in Zambia.

Singa has an exclusive option to acquire Luiri for USD2.5 million, which expires on July 1, and if exercised, Cradle Arc will receive a royalty of 1.5% of gross revenue generated from both assets up to a maximum aggregate of the net present value of USD2.5 million discounted at 8.0%.

The other option granted Singa, which expires on June 30, is to form a joint venture for the operation of the Matala and Dunrobin assets, which will be terminated on the start of commercial gold production.

Singa will pay an option fee of USD30,000 in three equal monthly tranches, starting on the date of agreement.

"The development of our Zambian gold assets has long been an important goal for the company. We are, however, extremely mindful of the potential dilution that raising equity funds for the development of Matala could have on existing shareholders at the company's current share price, and we therefore consider that this partnership with Singa represents the best path towards potential production in the near to mid-term," said Chief Executive Kevin van Wouw.

Shares in Cradle Arc were up 1.8% at 7.10 pence on Monday.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

Alliance News



Back to Alliance News


Share Price, Share Chat, Stock Market news at lse.co.uk
FREE Member Services
- Setup a personalised Watchlist and Virtual Portfolio.
- Gain access to LIVE real-time Regulatory News (RNS).
- View more Trades, Directors' Deals, and Broker Ratings.
Share Price, Share Chat, Stock Market news at lse.co.uk




Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.