Chalice withdraws from Eritrea JV with Newmont – Gold

Eritrean business news article: PERTH (miningweekly.com) – Australian junior Chalice Gold has withdrawn from a regional exploration joint venture (JV) with US gold-miner Newmont Mining in Eritrea, opting to explore on its own.

Chalice said in a statement on Monday that the proposed JV, which was established to explore and evaluate regional gold opportunities, had remained subject to formal documentation, which had not been completed.

The company has A$16-million cash on hand following a fully underwritten rights issue, and has, therefore, decided to explore the prospective tenement on its own, chairperson Tim Goyder explained.

Chalice announced the partnership with Newmont in July, and said at the time that it would benefit from the US major’s financial strength.

The area which was subject to the JV covered about 24 000 km2, and is currently subject to applications for grant from the Eritrean government.

Under the JV, Newmont would have spent an initial $1-million on a reconnaissance exploration programme, and in return would have retained a 75% interest.

Chalice is already developing the Koka Gold deposit, part of the Zara project in Eritrea.

Last week, MD Doug Jones indicated that Chalice could start construction at the openpit mine by the end of the year, pending the completion of a permitting process.
Edited by: Mariaan Webb

Source: http://www.miningweekly.com/article/chalice-withdraws-from-eritrea-jv-with-newmont-2010-09-06

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