(Ecofin Agency) - Cradle Arc announced yesterday April 16, that it has clinched a new agreement to set a joint venture with Singa Holdings and sell its Matala and Dunrobin gold mines in Zambia.
According to the agreement’s terms, Singa Holdings will initially pay $30, 000 and have the option to acquire the entire share capital of Luiri Gold, subsidiary of Cradle, for $2.5 million payable in cash. If Singa exercises the option that expires on July 1, 2018, Cradle will receive a 1.5% royalty on the revenue generated by the two assets.
“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 […],” said Cradle Arc CEO Kevin van Wouw.
Let’s recall that Cradle Arc operates Mowana copper mine in Botswana.