[miningmx.com] — TRANS Hex said it had received unconditional written approval from the Competition authorities, as well as shareholder and board approval to proceed with the acquisition of the Namaqualand Mines from De Beers Consolidated Mines (DBCM).
“Shareholders are advised that Trans Hex is still finalising certain aspects of the proposed transaction and that they should accordingly continue to exercise caution when dealing in the Company`s securities until full details have been announced,” Trans Hex said in a cautionary announcement today.
Namaqualand Mines is located on the West Coast of South Africa, close to Trans Hex’s Baken mine.
Trans Hex called off the first round of negotiations with De Beers over Namaqualand in March 2009, citing “current uncertain global economic and industry conditions’.
In terms of the current deal, Trans Hex has agreed to buy Namaqualand for R225m through an associate company, EPI, in which it has a 50% stake.
The other partners in EPI are RECM and Calibre (34%) and Dinoka Investment Holdings (11%). The remaining 5% is to be allocated to “broad-based historically disadvantaged groups of persons.’
Llewellyn Delport, Trans Hex CEO, said the company had brought in partners for the acquisition because the group could not afford to do the deal on its own.
“We were not prepared to jeopardise the main business through an acquisition,’ he said.
