BULAWAYO - International mining company, Chromex Mining, has concluded binding Heads of Agreement to acquire a 49 per cent stake of Falvect Mining to explore chrome concessions.In a statement Chromex Mining chief executive officer, Russell Lamming, said the acquisition was in line with the company’s strategy. “The investment in Falvect is in line with our strategy of building a broad portfolio of chrome and related mineral assets across southern Africa. The timing of the acquisition is linked to the lifting of the Zimbabwean ban on exports of chrome ore and fines, effective 1 November 2009 and will hopefully allow us to expand our production capabilities going forward.
“In spite of the challenging chrome market we have continued to invest in our operations and have a producing mine and operating beneficiation plant. “Our aim is to continue to build our business, expand on our portfolio and generate value for shareholders going forward,” he said.
Under the terms of the acquisition, Chromex will have the exclusive right to co-develop all Falvect chrome concessions in the Shurugwi region and tribute agreements in the Ngezi area, and market 100 per cent of the chrome products produced from those operations.
“In return, the Company will provide working capital into Falvect and funding for the development of current projects and any additional acquisitions in Zimbabwe, which is host to significant high grade chrome ore deposits,” said Lamming.
The company noted that a technical review of the contained mineralization would commence once final agreements had been concluded. Lamming said in line with the development of its business, Chromex has already begun investigating the economics of setting up beneficiation facilities in Zimbabwe.
Post published in: Economy