By Tatenda Mujeyi
Padenga Holdings Limited this week finalised acquiring a 50.1 controlling stake in Dallaglio Investments Private limited a mining firm at an extra ordinary general meeting in Harare.
The acquisition is worth US$20 million with transaction structured around capital injection into the expansion of Dallagio’s operations.
“The proposed transaction in which Padenga will acquire 50.1% shareholding of Dallagio is in exchange of an investment the equivalent of US$20million into expanding the operations of Dallaglio,” Padenga Chairman Thembinkosi Sibanda said.
Finesse Financial advisors brokered the transaction on the recommendation that it was a fair and reasonable opinion to Padenga Holdings.
“Finesse has been appointed as the Independent Financial Advisor and have considered the terms and conditions of the proposed transaction. Finesse are of the opinion that the acquisition by Padenga of a 50.1% shareholding in Dallaglio by way of the purchase consideration is fair and reasonable to the shareholders of Padenga,” Sibanda said.
Dallaglio is a Zimbabwean registered mining firm in the business of developing and operating large scale commercial gold mines in Zimbabwe.
“Dallagio is a company incorporated in Zimbabwe in 2005 in terms of the Companies act and is in the business of developing and operating large scale commercial gold mine in Zimbabwe,” the Padenga Chairman said.
Dallaglio operates two commercial gold mines in Chegutu and Guruve with a total indicated resource of 1.6 million ounces and a total of resource of 2.2 million ounces.
“Dallaglio owns the following mining assets: Pickstone Peerless Mine near Chegutu, an operating open pit mine which currently produces approximately 61kgs to 65kgs a month. Eureka mine near Guruve, an open pit gold mine that is currently under development with commissioning targeted in 2020 to eventually produce 140kgs a month,” Sibanda added.
The move has seen the company diversifying from its traditional crocodile leather and meat business to Gold mining in a move that shows the holding company’s intentions to explore varying businesses.