JOHANNESBURG (miningweekly.com) – As London-listed Strategic Natural Resources (SNR) undertakes a review of its Elitheni coal mine in South Africa, the natural resources developer would actively seek out “offers” for its 74% stake in the asset.

SNR on Tuesday said it would examine offers that recognised the value of the Elitheni coal mine and would be in the “best interest” of the group’s shareholders, Elitheni’s shareholders and creditors, as well as its black economic-empowerment partners.

This comes as SNR and Elitheni progressed payments to all creditors “as quickly as possible”, as the subsidiary’s indebtedness nearly sent it into liquidation last year.

Since May, SNR had provided £230 000 to Elitheni to enable it to pay creditors and employees, as well as cover operating expenses.

A recent capital raising of £1.5-million had enabled SNR to clear the payments of the most critical creditors, including London Commodity Brokers, and contributed to the buying of a 6% shareholding in Millennium Energy Corp to enable the group to diversify into oil and gas in the US.

SNR acquired five-million shares in Millennium Energy from Ivory Mint Holdings for £2.4-million – £400 000 in cash and £2-million through the issue of 40-million ordinary shares at 5p apiece.

“The Millennium transaction was entered into by the company to secure what I consider to be a very attractive oil and gas opportunity. Millennium is engaged in the natural gas business in the US.

“This process of diversification will make the company more attractive to investors in the future,” explained SNR CEO and chairperson Alex MacDonald.

“This strategy has been vindicated by the further offer of investment from Target Alliance (London), which had subscribed to £1.2-million at 3p a share, such subscription to be taken up by the initial subscription of £600 000 within five days of trading suspension being lifted and £600 000 30 days thereafter,” he added in a statement.

The proceeds would be used to pay creditors and meet working capital needs.