Aussie firm to take over Dizon mines

MANILA, Philippines - Listed mining firm Dizon Copper-Silver Mines, Inc. signed on Sept. 17 a Memorandum of Agreement (MoA) with Capital Gold Pty Ltd. for the acquisition of exclusive mining, processing and operational rights to the Dizon copper, silver and gold tailings in Zambales.

Capital Gold Pty Ltd was incorporated under the laws of the State of New South Wales, Australia.

As disclosed to the Philippine Stock Exchange (PSE) on Jan. 10, 2012, Capital Gold and Dizon, together with Capital Resources Corp. PLC, executed a Memorandum of Understanding (MOU) for the acquisition.

The MoU stated that Capital Gold and Capital Resources agreed to acquire from Dizon the exclusive mining, processing and operational rights to the Dizon Zambales copper silver gold tailings dam in Zambales Province in the Philippines.

“Supervening events have transpired which prevented Capital Resources from performing commercial undertakings, deliveries and covenants as outlined in the MOU. However, despite the expiration of the MOU, Capital Gold, on its own, continued to negotiate with Dizon with a view of concluding a mutually beneficial commercial transaction under terms and conditions acceptable to both parties.” Dizon disclosed to the PSE.

Under the MoA, Capital Gold would set up a new company to be incorporated under the Philippine laws for the purposes of acquiring tailings rights. The new company shall be called “Tailings Newco.”

Equity sharing shall be equally divided between Dizon and Capital Gold.