The long-suffering shareholders of the troubled Randgold & Exploration (R&E) mining company will at last 
receive R950-million in settlement and the 
opportunity to begin retrading a gold-boosted 
share from June 4.

It has been an irritating marathon dispute in which minority shareholders have had to be ultrapatient as the bigger fish negotiated terms over a period of nearly five years.

The R&E share has not been allowed to trade since August 2005.

But R&E shareholders have finally agreed on the distribution of R950-million to themselves and the creation of new horizons for both JCI and R&E, which have been suspended 
on the JSE.

A general meeting of R&E shareholders is to be convened on May 28.

Both JCI and R&E formerly operated under the leadership of the controversial, deceased mining magnate, Brett Kebble. R&E is currently run by CEO Marais Steyn and JCI by CEO Peter Gray. A key shareholder has been Monty Koppel, representing Let˘s eng Diamonds.

JSE has approved the relisting of R&E shares on the JSE from the start of trade on June 4.

R&E says that the proposed settlement and approved relisting of R&E mark a key milestone in management’s stated intention of 
restoring value to R&E shareholders as well as providing shareholders with a tradable share, following its suspension in August 2005.

JCI subsidiary JCI Gold in January gave R&E 30,1% of Free State Development & Investment Corporation (FSD), taking R&E’s shareholding in FSD to 85,21%.

JCI will also allow six-million Gold Fields shares to be transferred to R&E as well as allot new JCI shares to R&E, which, in turn, will distribute 0,0809 Gold Fields shares for every R&E share and unbundle all JCI shares in the ratio of 24,8 JCI shares for every R&E share. Through this series of transactions, the parties will be released of all claims against each other.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.