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Metorex sells Vergenoeg for $60m

I-Net Bridge | Thu, 24 Sep 2009 13:23
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[miningmx.com] -- DIVERSIFIED mining group Metorex has unveiled the proposed sale of its 55% stake in the Vergenoeg Mining Company to Spanish-based Minersa for $60m.

Metorex CEO, Terence Goodlace, said the sale formed an integral part of the group's strategy designed at restoring the Metorex balance sheet by December 2009.

He said proceeds from the sale would be used to reduce debt at its Ruashi project in the Democratic Republic of the Congo.

The sale increases the total funds raised since the end of June 2009, from the sale of assets for this purpose, to R945m.

According to the group, Vergenoeg has one of the world's largest known fluorspar resources with a long-life operating mine based on current production rates.

Minersa, currently a 30% shareholder in Vergenoeg, has been an active partner and has provided advice on metallurgical processes and international marketing to this operation for many years, the company said.

"Through the disposal of its remaining interest in Vergenoeg, Metorex continues to further define itself as a base metals producer through the increased focus of its resources towards that objective and management is of the view that a deliberate and resolute approach towards the development of the Ruashi project will generate value for shareholders," the company added.

Shares in Metorex closed 1.82% or 5 cents lower at R2.70 on the JSE on Wednesday. The stock has lost 32.50% or 1.30 rand of its value this month to date.

The JSE is closed on Thursday owing to Heritage Day, a national holiday.

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