China's Sfeco Group, a subsidiary of Shanghai Construction Group, is poised to buy the remaining 60 per cent stake of Chalice Gold Mines in the Zara project in Eritrea in eastern Africa for $100 million.

Sfeco will pay Chalice $80 million in cash in exchange for the gold miner's share of the mineral resource at the Koka gold deposit, and a further $20 million for the balance of the area within the Zara Project.

The deal is subject to a due diligence by the state-owned group, expected to be completed by March 12, Chalice said, as well as approval from Chalice shareholders, SFECO clearing regulatory requirements in China.

Chalice in July this year agreed to sell 30 per cent of Zara to the Eritrean government for $32 million. State-owned miner Enamco got a 10 per cent free carried interest from the sale.

"The sale of the remaining stake ends Chalice's involvement in the Zara project and would leave Chalice with a substantial cash balance, enabling it to pursue other opportunities in Eritrea and around the world," Tim Goyder, Chalice chairman, said in a statement.

The Perth-based company is an exploration and development producer which holds a 60 per cent stake in the Zara project, including the Koka deposit that has an 840,000 ounce gold resource.