Wednesday, 27th February 2008 (1778 views)

Eastern Goldfields (EGI) has announced that Caledonia Mining has accepted its offer to acquire the entire issued capital of Barbrook Mines in South Africa for 70 million South African Rand (4.62 million pounds).

Barbrook Mines is a wholly-owned subsidiary of Caledonia located in the Barberton region of South Africa and has a carrying value of $9.4 million.

EGI has said that the purchase will complement its existing and future planned operations with the Barbrook Mines comprising of an existing production infrastructure as well as significant resources and reserves.

The mining firm has also predicted that it will be able to convert the old order mining rights held by Barbrook to a new order mining right, with conversion required to take place during 2008.

The completion of the acquisition is subject to necessary regulatory approvals being obtained by EGI and a successful due diligence review by EGI within 30 days of the acceptance of the offer.

Eastern Goldfields is a junior gold mining company with specialises in mining, exploration and acquisition of gold properties in the Barberton goldfield of South Africa.

 

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