Johannesburg, South Africa — MININGREVIEW.COM — 25 September 2009 – South African-based and JSE-listed Metorex Limited “’ a well-known base metal operator in Southern and Central Africa “’ has announced that it is to sell its 55% stake in Vergenoeg Mining Company Limited for US$60 million (R480 million).
Metorex CEO Terence Goodlace commented, “This sale forms an integral part of our strategy designed to restore the Metorex balance sheet by December 2009.The proceeds from this sale will be used to reduce debt on our Ruashi copper and cobalt project in the Democratic Republic of Congo (DRC), and increases the total funds raised since 30 June 2009 from the sale of assets for this purpose to R945million.
Vergenoeg has one of the world’s largest known fluorspar resources with a long life operating mine based on current production rates.Situated 150 km north of Johannesburg, it boasts a state-of-the-art concentrator enabling it to meet market qualities and demand. Spanish-based Minersa “’ previously a 30% shareholder in Vergenoeg “’ now has a majority shareholding of 85%. It has been an active partner and has provided advice on metallurgical processes and international marketing to this operation for many years.
A Metorex statement issued here said that, in line with its stated intention to restructure and reduce debt at its Ruashi project, management had continued to pursue the strategy of disposing of certain of the Group’s assets.
It added that, through the disposal of its remaining interest in Vergenoeg, Metorex continued to further define itself as a base metals producer through the increased focus of its resources towards that objective. The company was of the view that a deliberate and resolute approach towards the development of the Ruashi project would generate value for shareholders.