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Meikles Limited’s mining arm, Meikles Centar Mining Private Limited has signed a partnership agreement with a local mining firm DGL Investments (Imviga) intending to buy 51 percent equity in the company. DGL Investments is a subsidiary of emerging gold producer Duration Gold Limited based in Matabeleland and majority owned by British-based Clarity Capital.
Meikles Centar Mining Limited has been looking at four gold mining companies with a view of getting into partnership with other partners or taking over their assets.
An amount of US$500 million is expected to be invested as the group seeks to spread its operations into mining.
Meikles Centar Mining chairman Mr Herbert Nkala said an agreement has been reached with a local mining company with a view to expand its production.
“The company has signed a term sheet with DGL Investments (“Imviga”) with a view to it purchasing a 51 percent share in that company,” Mr Nkala said.
DGL Investments is a small to medium sized gold mining company with two producing assets in the country.
Meikles Centar Mining got into the deal with potential to expand production, as well as to re-open a number of other brown-field properties in DGL’s portfolio.
The proposed purchase will be finalised subject to a full due diligence exercise and all regulatory approvals being obtained.
Mr Nkala could not divulge the financial details of the agreement saying the deal was still at its infancy adding that Meikles Centar Mining continues to explore for opportunities in the chrome mining industry.
“Much is being done on the ground in terms of chrome mining and should the investigations prove successful, a further announcement will be made in due course,” he said.
Further, he added that the new mining company is actively considering entering into the platinum industry and a number of investors have shown keen interest.
The platinum mining venture would be subject to potentially attractive claims being identified for development.
Meikles Centar Mining has since received regulatory approvals from the Zimbabwe Investment Authority and the Competition and Tariff Commission to start operations.
Funding will be injected into the projects individually while further capital will be introduced as required.
Last year Meikles Limited executive director Mr Mark Wood said the firm wants to come up with structures to accommodate such kind of mining investments.
Mr Wood said the country has a lot of struggling mines while some are operating under care and maintenance and the partnerships will revive some of the mines.
Meikles Limited wanted to venture into diamond mining through the acquisition of Rio Tinto (UK)’s 78 percent stake in Murowa Diamonds, but that has been reversed after Rio Tinto decided to stop the deal. – FinX.
Online Reporter