News Column

African Consolidated Extends Payment Date On Dalny Mine Acquisition

August 22, 2014

Sam Unsted

LONDON (Alliance News) - African Consolidated Resources PLC shares dropped in early trade on Friday after the firm said it had agreed to a further extension to the date on the payments due on the purchase of the Dalny Mine in Zimbabwe and said it is still seeking financing to continue as a going concern.

The resources and development firm shares were down 6.9% to 1.35 pence on Friday morning, making it the second-biggest faller in the AIM All-Share index. The stock had fallen to 1.235 pence earlier.

African Consolidated said it has agreed with Falcon Gold Zimbabwe Ltd, the Dalny Mine's current owner, to extend the payment date for the outstanding USD7.5 million owed to October 31.

Due to the extension, African Consolidated has agreed to make a contribution to care and maintenance costs at the Dalny Mine on a stepped basis. If the outstanding payment is made by October 3, it will make a USD250,000 contribution. If the payment is made by October 31, the contribution may rise to USD1 million.

The firm also said it remains in discussions regarding a new funding source, but reiterated it will have to find new financing in the third quarter of this year in order to continue as a going concern.

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Source: Alliance News

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