TORONTO (miningweekly.com) – JSE-listed Metorex has agreed to sell its entire 55% holding in South African fluorspar producer Vergenoeg Mining to Minerales Y Productos Derivados, for $60-million, the company announced on Thursday.

The proceeds of the sale, which requires approval from Metorex shareholders, will go towards paying down debt on its Ruashi copper mine, in the Democratic Republic of Congo.

Spain-based Minersa is already a 30% owner in Vergenoeg, and Metorex sold the balance of 15% to a consortium of black investors in late July.

Minersa and its associates also hold more than 10% of Metorex's own issued share capital.

The sale “forms an integral part of our strategy designed at restoring the Metorex balance sheet by December 2009", Metorex CEO Terence Goodlace said in a statement.

“The proceeds from this sale will be used to reduce Ruashi debt and increases the total funds raised since June 30, 2009, from the sale of assets for this purpose, to R945-million.”

Vergenoeg, located 150 km north of Johannesburg, has a large fluorspar resource, with a long-life operating mine and state-of-the-art concentrator.

Goodlace has indicated that the company may exit its other interests, and focus on becoming a pure copper producer through the development of Ruashi.

“Through the disposal of its remaining interest in Vergenoeg, Metorex continues to further define itself as a base-metals producer through the increased focus of its resources towards that objective and management is of the view that a deliberate and resolute approach towards the development of the Ruashi project will generate value for shareholders,” the company said.

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