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Oliver Kazunga Senior Business Reporter
THE disposal of Dalny Mine is nearing completion as African Consolidated Resources (ACR), which has shown interest in acquiring the mine, has one outstanding condition to fulfil before deal is concluded.
Falcon Gold Zimbabwe, which also owns Golden Quarry and Venice mines, recently resolved to dispose of Dalny Mine to the tune of $8 million.

“Falgold shareholders are further advised that African Consolidated Resources has one outstanding condition precedent to fulfil prior to the disposal of the assets (along with the related liabilities) of Dalny Mine, pertaining to a $12 million capital raise,” said Falcon Gold company secretary Qubeka Nkomo in a statement following the firm’s extraordinary general meeting held last week.

He said the company’s shareholders would be updated when the condition precedent was met.
Plans to dispose of Dalny have been on the cards since last year when the Kadoma mine was mothballed due to operational challenges.

The mine has faced operational constraints including rising labour and power costs, high domestic royalties, taxes and fees, as well as a damaging and costly illegal strike by workers in 2013.

Falgold has been in discussions with ACR to dispose of the assets and liabilities of Dalny.
ACR is an AIM-listed junior resource development company focused on Zimbabwe, Zambia and Mozambique with projects covering gold, nickel, platinum, copper, phosphate and diamonds.

The terms of the disposal include full settlement of Dalny’s all-known trade creditors and payment of salary arrears.
It is believed that ACR will also settle any capital gains tax or other liabilities due to the Zimbabwe Revenue Authority.

The balance of funds after the payments will be remitted to Falgold.
Following the shutting down of Dalny, Falgold which is owned by Canada-listed junior miner, New Dawn incurred a $12.5 million loss in the year to September 2013 after shutting down Dalny.