Chalice sells Zara

Company News

Chalice Gold Mines Limited (ASX:CHN) has agreed to sell its remaining 60 per cent stake in the Zara project to a subsidiary of Shanghai Construction Group.

It follows the agreement made in the middle of this year to sell a 30 per cent interest to the Eritrean National Mining Corporation, adding to the 10 per cent it already owns.

Under the new agreement the Chinese company will pay Chalice $US 80 million for the mineral resource and an additional sum of up to $US20 million for the balance of the area falling within the Zara project. Due diligence is to be completed by mid-March next year.

Chalice reported a net loss of $3.8 million for the year to June 30, 2011.

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