[miningmx.com] –DIVERSIFIED mining group Metorex said it was set to move ahead with the sale of its entire stake in Vergenoeg Mining Company following the securing of shareholder approval.
The transaction, which will see Metorex’s 55% stake being sold to Minerales y Productos Derivados SA (Minersa), is now unconditional.
“The sale of our 55% shareholding in Vergenoeg for $60m forms an integral part of our strategy to restore the Metorex balance sheet,” said Metorex CEO Terence Goodlace in a statement to the JSE.
Goodlace said the proceeds received from the transaction would be used to reduce the Ruashi project finance loans, with $24m being paid towards the Ruashi Debt instalment due end December 2009, $26m being used as a voluntary pre-payment against Ruashi Debt and $10m going towards general working capital requirements.
At 12:53 shares in Metorex were trading 5.26% or 20 cents up at R4 on the JSE. The stock has gained 30.72% or 94 cents this month to date.
