china deal?

What if China Acquires Chalice Gold Mines in Eritrea?
December 23rd, 2011 TesfaNews

By TesfaNews,

Ever since the announcement made by Chalice Gold Mines about the signing of a non-binding letter of intent to sell its 60% stake in the Zara gold project Eritrea, rumors started to run fast in the capital markets to know who could be that lucky counterpart since Chalice did not disclose the name of the potential acquirer.

The first suspect was Canadian Miner Nevsun Resources who owns and develops the highly profitable Bisha gold mine in Eritrea. This is because the company announced a couple of months back that it was looking to buy advanced-stage copper-gold projects that had some kind of economic assessment, either a PEA (preliminary economic assessment) or greater, which Chalice fits well all those conditions, in the Americas, Europe or Africa.

Senior analyst, Peter Grandich, however, have a different clue about the possible potential buyer.

He suspects Chinese mining companies because, as he putted it bluntly, they are always been sniffing in Eritrea

A couple of months back, the stranger west African country of Gabon, that is about to lose its temporary seat at the Security Council this month, tried its craziest and miserably failed plot to put a halt to all foreign mining investments in Eritrea. At that time, Grandich argued, the Chinese was about to announce a series of acquisition as they have always looked at Nevsun, Sunridge and others.

After the Gabon plot failed, the Chinese has simply backed down but put a watchful eye on every new discovery and drilling results issued by the more than dozen junior minors in the country.

It was at this time that Chalice expressed it intent to sell its 60% share to a certain undisclosed partner.

Grandich says, “Once the Chinese take a foothold in Eritrea, all that crap in the UN will come to an end,” he said “because they’re the next big thing economically.”

Once that happened, he said “the worst in Eritrea is going to be behind us.”