Toronto- and Australia-listed Chalice Gold late on Tuesday said it agreed to sell its 60% stake in the Zara gold project in Eritrea to China SFECO Group, a subsidiary of Shanghai Construction Group, for as much as $100-million.
China SFECO will pay $80-million for Chalice’s share of the mineral resource at the Koka gold deposit, and not more than$20-million for the balance of the area falling within the Zara project. The deal is subject to approval from Chalice shareholders, SFECO clearing regulatory hurdles in China, as well as other conditions.
The Perth-based company owns a 60% stake in the Zara project, which includes the Koka deposit that has an 840 000 oz gold resource. The company earlier this year agreed to sell a 30% stake in Zara to the Eritrean government for $32-million. The State-owned miner Enamco also gets a 10% free carried interest.