JOHANNESBURG (miningweekly.com) – The South African Reserve Bank on Friday rejected the proposed disposal of diamond miner Thabex’s interest in Lesotho-based Angel Diamonds.

The Reserve Bank stated that Angel could not be disposed of on extended credit terms, and that the issuance of private diamond exploration company Mantle Diamonds’ ordinary shares to the Angel shareholders, would constitute a loop structure.

Thabex holds a 70% interest in Angel Diamonds, and in October last year announced that it would sell a 42% stake in the operation to Mantle Diamonds, for a consideration of $2-million.

Mantle also had the option to acquire the balance of Thabex’s interest in Angel Diamonds at market value, after a feasibility study had been completed and a mining right granted.

However, Thabex on Friday advised shareholders that it would not proceed with the disposal of its interest in Angel.

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