Mining consultancy and advisory firm CIC Mining Resources Ltd says that 43%-owned CIC Precious Metals Group (CICP) has commenced gold production at Shanba Gold in China.
A total of 4,790 ounces of gold has been produced so far. The costs of the mine and its equipment are expected to be $8.3m and this will be financed by initial gold production. CICP will start receiving dividends from Shanba once these costs are covered or the cash will be reinvested in gold production.
CICP has also secured a base at 48%-owned CIC Congo’s proposed DR Congo gold mine and equipment is being shipped to the site.
CIC Mining has sold shares in CICP for an initial $300,000 (£189,000) plus up to $2.7m (£1.7m) more payable within three years of a flotation of CICP. If the shares are sold for an average price of less than 30p a share, excluding the initial payment, then the purchase price will be reduced. CIC Mining also sold shares in heavy oil emulsion fuel technologies company Emulsion Fuel for £150,000. A further £1.35m could be payable. CIC Mining owns 31.5% of Emulsion Fuel.
Both CICP and Emulsion Fuel are moving ahead with flotations.
In June, CIC Mining issued B shares to registered shareholders, which were equivalent to 4% of their holding. Each B share is convertible into an ordinary share.
At 2.6p a share, up 0.17p, CIC Mining is valued at £3.96m.
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