DUANE PARNHAM
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – Southern Africa-focused explorer Giyani Gold has announced that its binding letter of intent (LoI) with Horizon Enerji and Sumo Coal has expired, bringing an end to the triple-listed company’s plans to diversify into the oil services and coal sectors.
The parties were unable to conclude a definitive agreement by December 31, which led to the LoI being terminated.
In terms of the LoI, Giyani would have acquired the Ceyhan project – a fully permitted crude oil storage and dry bulk cargo port development – in Turkey.
The deal would have also resulted in the gold asset developer buying Sumo Coal, a cash flow generating coal operator in South Africa.
Giyani executive chairperson Duane Parnham noted that, although the company was disappointed that market conditions and timing constraints prevented a definitive agreement from being signed before year-end, there was still a possibility that a deal could be concluded with the shareholders of Horizon and Sumo.
“Giyani remains committed to strengthening the company by means of concluding a strategic acquisition and our corporate structure and global listings provide Giyani with the flexibility to be successful in this strategy," he said in a statement on Monday.
Trading in Giyani’s shares had been halted following the initial announcement of the agreement in August but would now be reinstated.
BOARD CHANGES
Meanwhile, Giyani also announced that, following the expiration of the agreement, the board of directors had rescinded the appointment of Bertan Atalay as interim president on December 31.