Middletons acted on behalf of Chalice Gold in the sale of its 60% interest in the Zara Gold Project in Eritrea to China SFECO Group for US$80 million. This follows Chalice’s arrangement in July 2011 to sell a 30% interest in the project to Eritrean National Mining Corporation (ENAMCO) in addition to its 10% free carried agreement.
Simon Salter, lead partner on the deal said, “This was a complex transaction involving a lengthy due diligence process and in country investigations. The sale was of an Eritrean interest to a Chinese group so required regulatory approvals in Eritrea, China and Australia.”
The completion of the transaction puts Chalice in a strong position to embark on strategic growth plans in the region, including acquiring new projects.
Chalice’s Executive Chairman, Tim Goyder, said, “This is a time in the market when cash is king and opportunities abound. We are very pleased to have crystallised significant value for our shareholders from the successful completion of this transaction, and we are now looking forward to identifying and securing new projects that will define the next phase of growth for Chalice.”
Middletons has built a reputation as expert advisors in the resources sector spanning well beyond Australia. The firm’s mining, energy and resources specialists have been involved in advising a number of mining companies with African assets and have a thorough understanding of the continent’s various regulatory requirements and challenges.
“Our team has a strong relationship with African advisors. This coupled with our experience working with governments particularly in Africa, South America, South East Asia, Mongolia and China ensures we get the best results for our clients expanding or operating assets offshore,” concluded Mr Salter.
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