SouthAfrica/Guinea/Liberia – Sable Mining, the AIM-listed exploration and development company has completed transaction agreements which will monetise its interests in the Rietkuil coal project in South Africa for an immediate cash consideration of $1.28 million.
Under the transaction, Sable Mining has sold its 63.5% shareholding interest in the Rietkuil project’s owner, Delta Mining Consolidated (DMC), to Anglo African Capital, a South African company which plans to take Rietkuil through to production.
As part of the transaction, Sable Mining has negotiated a debt restructure agreement, pursuant to which its existing DMC debt balances (of approximately $18.6 million plus interest) will be repaid on a priority quasi-royalty basis from the project’s operations on a quarterly basis at a rate of $1.20/t of coal products sold from Rietkuil.
Additionally, Sable Mining has concluded the sale of non-core interests in Liberia.
The sale of its 60% interest in Salmec Resources, a Liberian company which originally held exploration rights for gold and iron ore, from which the iron ore rights have been separated and retained by Sable, for an immediate cash consideration of $700 000.
The sale of these non-core assets is in line with the company’s strategy, which is to focus on and rapidly advance its Nimba iron ore project in Guinea, whilst assessing opportunities to generate value from its wider asset portfolio.
“Nimba is a world class DSO mining asset, which requires modest capital expenditure to bring it into production in the near term, and with this in mind, it justifiably remains Sable Mining’s absolute priority,” Sable Mining CEO Andrew Groves says.