(NEWZIMBABWE) SA firm snaps up chrome miner

SA firm snaps up chrome miner
by Business reporter
10/05/2010 00:00:00

LONDON-LISTED Chromex Mining plc says it has completed the US$1.15 million Waylox Mining (Private) Ltd, a chrome mining company operating in Zimbabwe’s Darwendale area since 2008.

Waylox - previously a wholly owned subsidiary of continental mining group – started operating in Zimbabwe two years ago after acquiring the 683 hectares Trixie and Prince of Wales claims located in Darwendale and on the mineral-rich Great Dyke geological structure.

Chromex officials said the acquisition is in line with the company's strategy of building a solid portfolio of chrome production assets across southern Africa.

Waylox has been operating in Zimbabwe since August 2008 after acquiring the 683 hectares Trixie and Prince of Wales claims located in the prospective Darwendale area. The Darwendale area is located on the Great Dyke of Zimbabwe which is host to significant chrome resources.

"This acquisition represents a significant opportunity for Chromex as we expand our position as a leading chrome company in southern Africa.

“With resource estimation and metallurgical test-work almost complete we should be in a position to start the development of the Trixie claims in Q4 of this year, and fast-track the project towards production, unlocking value for shareholders," Chromex CEO Russell Lamming said:

Analysts said the acquisition moves the Chromex another step towards becoming one of southern Africa’s leading chromite miners.

"These operations (Trixie and Prince of Wales) should give Chromex significant additional production and cash-flow," a South African broker saidd.

Chromex currently operates two mining assets located on the Bushveld Complex in South Africa but has been looking to expand into Zimbabwe.

Apart from the acquisition of Waylox, Chromex has signed a binding heads of agreement for acquiring a 49 percent stake in Falvect Mining (Private) Ltd which holds chrome concessions in Shurugwi and the Ngezi areas.

Interest in Zimbabwe’s mining sector is picking up encouraged by better commodity prices and the stabilization of the local operating environment.