Cash bottleneck leads to payment in gold
Due to a liquidity shortage, Metallon Gold, the company with the largest gold mine in Zimbabwe, is considering remunerating its suppliers for mining equipment in gold. Metallon Gold needs at least $400 million to purchase new machines and upgrade existing equipment, says Chief Executive Officer Mzi Khumalo of Metallon Gold.
Now gold is not legal tender in Zimbabwe and if the legally permitted but not simple construction in connection with rental laws succeeds, then it would also be the first time that gold is paid. Mining is Zimbabwe's biggest source of foreign exchange. After South Africa, the African country has very large platinum reserves, as well as iron ore and chromium, in addition to gold.
Caledonia Mining - https://www.commodity-tv.net/c/search_adv/?v=298338 - is one of the gold companies that work successfully in Zimbabwe and have absolutely no liquidity problems. They can even sell their gold with a bonus payment to the central bank there. The company owns 49 percent of the Blanket gold mine and a letter of intent was recently issued to increase its stake to 64 percent. The mine's total resources have currently been increased to almost 1.8 million ounces. Resources have increased by 86 percent since 2011, although more than 300,000 ounces have been mined during this period.
A completely different project, the Lost Cities project of Aurania Resources in Ecuador - https://www.commodity-tv.net/c/search_adv/?v=298509, looks as exotic as the gold search in Zimbabwe. The company's flagship project is located in the Andes and covers approximately 208,000 hectares and 42 concessions. A stream sediment program identified seven epithermal targets for potential gold and silver mineralization and 13 porphyry copper targets.
Current company information and press releases from Caledonia Mining (https://www.resource-capital.ch/en/companies/caledonia-mining-corp.html) and Aurania Resources (https://www.resource-capital.ch/en/companies/aurania-resources-ltd.html).
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