Asmara- Capital of Eritrea

Sub-Sahara Resources Limited announced that a Scheme Booklet for the planned merger with Chalice Gold Mines has been filed with the Australian Securities and Investments Commission (ASIC).  

A Scheme Booklet contains detailed information how the proposed merger of both companies is going to be arranged. The consent of Australian regulators for transaction of this nature requires the approval of the Australian Stock Exchange Limited (ASX) and the Australian Securities and Investments Commission.

Further, Sub-Sahara has been granted a loan facility of $450.000 from Chalice Gold Mines Limited in order to fund continued development at the Zara Project (Koka Deposit) in Northern Eritrea.

The $450.000 loan is given interest free until 01.09.2009; thereafter the ANZ rate for loans over $100.000 plus 3% will apply.

Chalice Gold Mines has proposed to Sub-Sahara share holders 1 Chalice Share for every 10.73 Sub-Sahara Share.

The merger is set out to combine the strong cash deposit of Chalice with Sub-Sahara’s 69% ownership of the Zara Gold Project in Eritrea.

Further, Chalice is planning to increase the ownership stake on the Zara Project to 80% once the merger has been completed. The time table for the merger is delayed by three weeks at this stage, because the initial plan to file the Scheme Booklet with the ASIC was the 11.05.2009.

This might postpone the finalization of the merger slightly, which will be also subject to third party and Sub-Sahara shareholders approval, towards mid –  August – 2009.

Related posts:

1. Chalice Acquires Full Ownership of Zara Gold Project, Eritrea
2. Chalice Plans Share Placement to up Stake in Eritrea Gold Project
3. Chalice Gold Mines Entitled to A$5 Million Following Merger with Sub-Sahara Resources
4. Chalice Gold Upgrades Regional Potential at Zara Project in Eritrea
5. Chalice Gold Raised $4.401.000 for Project in Eritrea