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JOHANNESBURG (miningweekly.com) – The sale of Sentula Mining subsidiary Benicon Coal to Miranda Mineral Holdings has fallen through after certain conditions were not met in time.
Sentula on Friday announced that it remained committed to shedding the asset and had entered into discussions with undisclosed parties after the termination of the Benicon Coal sale agreement and the Benicon Coal guarantee, pledge and cession agreement.
“[The agreements] have lapsed due to nonfulfillment of certain of the Benicon Coal conditions precedent within the agreed timeframe. Accordingly, the Benicon Coal disposal has automatically terminated and will not be implemented,” the company said in a statement.
The parties had until July 31 to fulfil the conditions precedent after JSE-listed Miranda, in conjunction with black women-owned Mochiba, in February acquired 100% of the issued share capital of Benicon for a nominal R1 000.
Another R150-million was to be paid to Sentula in terms of loan facility agreements between Sentula and Nkomati Anthracite, which operated a mine in eastern Mpumalanga, in which Benicon Coal held 60%.
Following the acquisition, Miranda and Mochiba would have each held 50% of Benicon.
The Nkomati mine, which had been placed on care and maintenance in 2011, was in the process of being brought back into production after receiving an integrated water-use licence and the approval for an amended environmental management programme in November.
Sentula’s share price plunged 10.34% by 11:30 on Friday following the announcement.
Meanwhile, the company told shareholders in a separate statement on Friday that chairperson Jonathan Best had resigned for personal reasons. Ralph Patmore would assume the role of acting chairperson until a permanent chairperson was appointed.