Sable signs R14m deal for Blain assets
JOHANNESBURG (miningweekly.com) – JSE-listed Sable Platinum plans to acquire the assets of diamond miner Blain Capital Solutions for R14-million.
With depressed commodity prices having had a negative effect on the capital markets, Sable believed it was in its best interest to acquire a cash generating asset to cover expenses and provide cash flow to enable the company to continue developing the assets in its portfolio.
Sable would acquire the diamond dump processing operation, which included a dense medium separation plant, pans, grease tables, dump trucks, a front-end loader, an excavator, screening equipment and residue deposits, to conduct exploration, mining, recovery and sale of diamonds from the dumps.
To fund the acquisition, Sable would issue 20-million shares at 35c apiece on fulfilment of the conditions precedent, as well as issue ten-million shares at 35c apiece upon the first profit target being met – that is, the achievement of R6.9-million profit before tax in the first year of operation of the business.
The miner would also issue ten-million shares, at 35c apiece, upon the second profit target being met, namely the achievement of R6.9-million profit before tax in the second year of operation of the business.
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