The battle for the Sabi gold mine appears to be over, with the government of Zimbabwe buying the 55% interest held by Guyana Gold (GUY-T) for $11 million.
Under the agreement, the state-owned Zimbabwe Mining Development Corp. will also pay Guyana Gold 25% of any profit incurred from the sale of Sabi during the next 12 months.
For its part, Guyana Gold gains exclusive prospecting order (EPO) 1047, a property near the Sabi mine, the geological structure of which is similar.
As well, EPO 725, previously held by the Sabi Gold Mine Partnership, has been redistributed. Guyana retains exploration and participation rights to future production in EPO 725, saying it “looks forward to the continued development of this resource” with the state-owned firm.
Guyana Gold entered into the joint venture in February 1995, when it acquired its interest for US$9 million.
Proven, probable and possible reserves at Sabi are calculated at 218,224 tonnes grading 4.78 grams gold per tonne.
In a separate development, Guyana Gold has reached an agreement-in-principal with Diagem International Resource (DGM-V) to form a Brazilian joint venture, which will focus on several “prime” gold properties in various stages of exploration.
Guyana will acquire 70% of a Brazilian operating company through an initial investment of US$375,000 and the issuance of 600,000 shares of Guyana Gold.
The Brazilian operating company will hold a 100% interest in the Alta Floresta, Nova Canaa and Para Minosso properties, in what the company describes as the “proven gold-bearing regions” of the Amazon and west-central portions of the country.
Vancouver-based Diagem is currently producing diamonds at its properties in the Brazilian state of Mato Grosso.
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