Metorex sells stake in Vergenoeg to consortium of black investors

By: Esmarie Swanepoel

Published: 29th July 2009

JOHANNESBURG (miningweekly.com) – South Africa-based diversified miner Metorex has agreed to sell 15% of its shareholding in Vergenoeg Mining to a consortium of black economic empowered (BEE) entities.

The company would sell the stake in the fluorspar producer to Medu Capital for R105,7-million.

“This is an important step in the transformation of Metorex and this transaction positions Vergenoeg well for its ongoing fluorspar operations. It also demonstrates our commitment to restructuring the group and enhance our liquidity position,” said Metorex CEO Terence Goodlace.

Metorex said in a statement on Wednesday that as the controlling shareholder in Vergenoeg, it would like to introduce BEE into Vergenoeg in line with the requirements stipulated in the Mineral and Petroleum Resources Development Act, and maximise the value through an efficient and orderly BEE process.

“The company believes that this BEE transaction would assist in achieving this.”

Metorex still retained a 55% shareholding in Vergenoeg Mining.

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