Cradle Arc has entered into an option agreement to sell its Matala and Dunrobin gold assets to Singa Holdings Zambia.
Through its subsidiary Luiri Gold Mines, Cradle Arc has granted Singa an exclusive option to initially form a joint venture for the operation of the Matala and Dunrobin gold assets.
According to the company the option will expire on June 30, unless extended and Cradle Arc has further granted Singa an exclusive option to acquire the entire issued share capital of Luiri for $2.5-million.
“The development of our Zambian gold assets has long been an important goal for the company.
“We are, however, extremely mindful of the potential dilution that raising equity funds for the development of Matala could have on existing shareholders at the company’s current share price and we, therefore, consider that this partnership with Singa represents the best path towards potential production in the near to mid-term,” said Cradle Arc Chief Executive Officer Kevin van Wouw.