Metallon sells Arcturus to TN Securities

Metallon sells Arcturus to TN Securities

HARARE, December 1 (The Source) – Zimbabwe’s biggest gold producer, Metallon Gold has sold off its Arcturus mine to Tawanda Nyambirai’s investment company,TN Securities at an undisclosed price.

Arcturus Mine has a proven gold resource of one million ounces.

Metallon has ceded all of its rights and obligations concerning Arcturus Mine to TN Securities as part of the disposal process. The rights include but not limited to, trade and statutory creditors and the mining rights over Arcturus mining lease Number 33, Metallon said on Friday.

After continuous losses, Arcturus Mine was placed under care and maintenance in the first quarter of 2016.

“The sale of Arcturus Mine is in line with Metallon’s strategy to prioritise our investments, focus resources and reduce costs,” said Metallon chief executive Ken Mekani in a statement.

“The transaction provides the mine, which was on care and maintenance, with the opportunity for the resumption of operations, leading to job creation and increased gold output for the country. Arcturus is a robust asset with a significant gold resource and Metallon received offers from a number of potential investors, both from within Zimbabwe and abroad. We have taken the decision to sell the mine to a Zimbabwean company in order to empower local investors.”

After the disposal of Arcturus, Metallon now operates four mines; Redwing, How Mine, Shamva and Mazowe with cumulative gold resources of eight million ounces.