[miningmx.com] – TRANS Hex raised the prospect of completing the acquisition of Namaqualand Mines (NM) – a transaction that is now two-and-a-half years in the making – in three working days (October 15).
In a statement to the JSE, the diamond company said it and De Beers Consolidated Mines (DBCM), the party from which its 50% owned Emerald Panther Investments is buying NM, agreed the deal had become “a matter of urgency”.
“Trans Hex is concerned about the resultant delays in closing the transaction and has recently made proposals to DBCM aimed at finding a resolution on commercial terms,” Trans Hex said in the statement.
“Trans Hex and DBCM have agreed that all appropriate steps will be taken as a matter of urgency, with a view to reaching a conclusion by 15 October 2013,” it added.
The sticking point in the proposed transaction is how the South African government deals with its 20% stake in NM with market sources indicating that its concern was the potential liability of holding the shares.
Trans Hex and DBCM were both contacted by Miningmx, but neither could provide comments beyond the contents of the JSE statement. Piet Viljoen of Re:CM, a 25% shareholder in Trans Hex also declined to comment.
The original agreement between Trans Hex and DBCM to buy NM was struck in May 2011. It was then renegotiated in August 2012 in which the purchase price for NM to R166m from R225m.
The revised agreement also made De Beers responsible for key “legacy” rehabilitation liabilities on the the Buffels Marine Complex which includes the Kleinzee mine – an operation that can still be sold to Trans Hex after four years.
Trans Hex CEO, Llewellyn Delport, described the delayed transaction as “torture” earlier this year but with production of 97,000 carats during 2010, which was its last operating year before being shut down, it could have a transformative effect on Trans Hex.
One interesting interpretation of the announcement today is that by committing to finalising the deal by October 15, Trans Hex is drawing a line in the sand possibly with a view to walking from the deal.
“I can’t comment on the contents of what’s going on but these are interesting questions that are being raised and well within the field of debate,” a market source said.
