Falco Gold closes asset purchase

In exchange for a debt-equity package worth about $11 million, Falconbridge Gold (TSE) has acquired its parent’s African gold assets and has an option to purchase all of Falconbridge’s gold properties in Canada.

The property portfolio includes two gold mines in Zimbabwe and Botswana, which together produce about 29,000 oz. per year. Falco Gold hopes to double that production by spending $27 million over the next five years. The debt-equity package consists of 1.5 million shares and a $7.4-million convertible debenture.