Metallon sells Arcturus Mine
Metallon Corporation (‘Metallon’), the gold mining, development and exploration Company with producing assets in Zimbabwe, has announced the sale of Arcturus Mine to TN Securities (Pvt) Ltd. Arcturus Mine has a gold resource of 1 million ounces with exploration potential.
As part of the transaction, Metallon has ceded all of its rights and obligations concerning Arcturus Mine to TN Securities (Pvt) Ltd. This includes, but is not limited to, trade and statutory creditors and the mining rights over Arcturus mining lease Number 33.
In Q1 2016 Metallon placed Arcturus Mine under care and maintenance with mining operations
suspended due to consistent losses.
Ken Mekani, Chief Executive Officer of Metallon, 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 8 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.
“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. Arcturus is a robust asset with a significant gold resource and 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.”
Notes to Editors:
Metallon Corporation Limited is the leading gold mining company in Zimbabwe. Metallon owns and operates four gold mining operations and has a world class gold resource of over 8.3Moz. Metallon runs four mines, namely How Mine, Mazowe, Redwing and Shamva. Each of these mines operate under separately registered companies, namely Bulawayo Mining Company, Goldfields of Mazowe, King’s Daughter Mining Company and Goldfields of Shamva,respectively.
How Mine, near Bulawayo, is the flagship mining operation and produces over 55% of production. Shamva and Mazowe Mines, both located near Harare, each produce approximately 22% and 13% respectively and Redwing Mine, near Mutare, is currentlyramping up production. Gold production in 2016 was 94,212 ounces. Metallon is focused on
increasing gold production significantly through ambitious expansion plans across all Zimbabwean operations and developing gold mines in Tanzania. Metallon, founded by itsChairman, Mzi Khumalo, is committed to investing in all its operations and working responsibly in relation to our people, the environment and the communities in which we operate.