Oliver Kazunga, Senior Business Reporter
GOLD mining concern, Metallon Corporation has sold one of its operations, Arcturus Mine to TN Securities Limited.
Metallon did not disclose the value of the sale but indicated that as part of the transaction the gold miner had ceded all of its rights and obligations concerning Arcturus to TN Securities.
“Metallon Corporation, the gold mining, development and exploration company with producing assets in Zimbabwe, has announced the sale of Arcturus Mine to TN Securities Limited.
“Arcturus Mine has a gold resource of one million ounces with exploration potential,” it said in a statement.
The rights and obligations ceded, Metallon said, included but were not limited to trade, statutory creditors and the mining rights over Arcturus mining lease Number 33.
A source from TN Securities said the sale was worth $10 million and the buyer was taking over Metallon’s debt.
Metallon chief executive officer Ken Mekani commented:
“Metallon is pleased to announce the sale of Arcturus Mine to TN Securities, a Zimbabwean investment company.
“Metallon has four operating mines and over eight million ounces of gold resources. The sale of Arcturus Mine is in line with Metallon’s strategy to prioritise our investments, focus resources and reduce costs.”
Mr Mekani said the transaction provides the mine, which was on care and maintenance, with the opportunity for the resumption of operations, leading to job creation and increased gold output for the country.
He said Arcturus was a robust asset with a significant gold resource and that Metallon received offers from a number of potential investors both from within Zimbabwe and abroad.
“We have taken the decision to sell the mine to a Zimbabwean company in order to empower local investors.
“As the leading gold mining company in Zimbabwe and a significant employer, Metallon is committed to operating and investing in Zimbabwe,” he said.
In the first quarter of 2016, Metallon placed Arcturus Mine under care and maintenance with mining operations suspended due to consistent losses.