Miranda Mineral Holdings, which is currently in the process of selling its coal subsidiary, will change its name to Union Atlantic Minerals (UAM).The objective of UAM is to become a mid-tier, Africa-focused explorer, developer and producer of poly-metallic concentrates ultimately focused on the mining and beneficiation of base metal and technology metal ores.
Its principal asset identified for the re-generation of the company is the Rozynenbosch project, a copper-lead-zinc-silver deposit situated in the Northern Cape Province of South Africa.
In pursuit of the revised strategy, the management of the company has embarked on several initiatives together with its corporate advisors and mining and mineral experts in the identification and evaluation of projects which will fit the revised strategy.
A pipeline of potential projects has been identified and each project is being evaluated on its merits.
The professionals involved in the project include Minxcon Mining and Exploration Consultants, Consulmet, River Capital Partners, Qinisele Resources and Cadiz Corporate Solutions Proprietary.
Minxcon is a specialist consultancy offering various services in the minerals industry. Consulmet is a specialist engineering group focused on fast-tracked design and construction of minerals processing plants with a track record of delivering projects in remote locations and developing countries for major, mid-tier and junior mining companies.
Qinisele is an independent, relationship led, corporate advisor specialising and offering independent corporate advice to the resources sector. Cadiz presents a specialist team offering services in, amongst others, mergers and acquisitions, corporate restructuring, capital raise and BEE transactions.
As part of the review of the asset base of Miranda, and in keeping with the mandate to refocus and restructure the company, an exercise was conducted to evaluate the status and commercial potential of each of the immovable properties in the portfolio of mineral assets.
After due consideration and evaluation of the various opportunities which have presented themselves, the portfolio of coal assets was considered to be non-core to the future strategy of the company. The assets in the portfolio, where management believed that value could be unlocked with additional work and which could be used as a foundation for the re-generation of the company, were identified.
As part of the process, Minxcon was mandated to prepare an updated and SAMREC-compliant mineral resource and competent person’s report for the Rozynenbosch project, as well as to review and consolidate all technical information in the possession of the company.
From the updated geological models a preliminary mine design and extraction plan has been formulated and a preliminary estimate of the capital required to establish same has been prepared. In addition, Consulmet is conducting a high-level design inclusive of conceptual plant, infrastructure requirements and tailings deposit facilities to arrive at a capital estimate for the project.
In order to maintain tenure and mineral rights compliance at the Department of Mineral Resources, Milnex 189 CC (a mining and environmental consultancy) has been retained to secure and administer the mineral rights portfolio and environmental obligations of the company.
Miranda Coal sale update vital to business sustainability
On 28 August 2017 Miranda Mineral Holdings agreed to sell Miranda Coal to Siafa Resouces for R8 million.
The transaction remains subject to the fulfillment of certain conditions precedent.
The directors of Miranda Holdings believe that the disposal of the coal assets is in the best interests of the company and shareholders as a whole.
If these are not implemented the company will be at risk of not meeting its financial commitments as they fall due and consequently will be unable to continue to trade, which in turn may result in the appointment of a business rescue practitioners or liquidators.
As a result of the implementation of the forementioned disposals it is anticipated that the company will be in a position to enter into financing arrangements which will enable it to successfully embark on, inter alia, the Rozynenbosch project.
In addition, the funds raised from the proposed disposals will enable the company to pay for and complete all the outstanding financial statements and procure the necessary audits in respect of same, as well as to finalise the competent persons report on its Rozynenbosch asset.
This will place the company in a position to make the necessary application to the JSE to lift the suspension of its shares on the JSE and approach interested parties for the further investment required to revive the company.