ASX-listed phosphates explorer and project developer Minemakers has completed the sale of all of its remaining legacy assets in South Africa to investment company Spearhead Capital, the company announced on Thursday.
These assets remained from Minemakers’ original takeover of Bonaparte Diamond Mines in 2009 and are no longer core to the business.
This asset sale is in line with the company’s strategy to be a major contributor to the world nutrient market through the development of world class rock phosphate projects, through the development of its wholly-owned Wonarah deposit in the Northern Territory of Austraila - believed to be the largest conventional sedimentary deposit held by a listed company.
Sale proceeds totalling R10.86 million have been received. Under the sale agreement R1.85 million is to be held in escrow until the fulfilment of two post-completion accounting conditions.
“It is pleasing to realise cash proceeds from legacy assets and, in particular, we would like to acknowledge the effort and tenacity of our CFO Rod Wheatley, who led the sale process over a prolonged period,” says Minemakers MD Cliff Lawrenson.
Minemakers said in a statement that it is well placed to execute its near-production Baobab rock phosphate project, which is subject to shareholder approval in August 2015.
“This cash injection adds to our existing cash and will be a useful addition as we work to complete the acquisition of the Baobab rock phosphate project in the Republic of Senegal,” says Lawrenson.