FRIDAY, 10.30AM
MINING house Gencor is to sell certain of its local and Ghanaian mining interests to Canadian company Eldorado Gold Corporation in a R193,6-million deal, the companies said on Friday.
The assets include two mines, Fairview in Mpumalanga and Bogosu in Ghana, as well as nine exploration projects.
“Eldorado’s participation in a South African greenstone gold operation will be the first major Canadian investment in the South African mining industry,” Gencor CEO Gary Maude said on Wednesday.
The deal involves $140,3-million “on closing”, and up to $53,3-million in deferred compensation, which will be settled by way of $76,3-million in cash and $109,9 in convertible, non-voting Eldorado shares. Gencor will also receive an additional $7,4-million as a 1,5% smelter royalty, with the SA grouyp enjoying a 40% voting interest in Eldorado.
The deal is still subject to approval by the Reserve Bank, the Ghanaian government and regulatory authorities.