Mineral Deposits sells Teranga stake

15th January 2014 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

Mineral Deposits sells Teranga stake

Photo by: Bloomberg

PERTH (miningweekly.com) – Mineral sands miner Mineral Deposits has sold its shareholding in ASX- and TSX-listed Teranga Gold for $20-million.

In 2010, Teranga acquired the Sabodala gold mine and regional exploration package in Senegal by way of a demerger from Mineral Deposits. As part of the demerger, Mineral Deposits obtained 200-million common shares in Teranga.

Some 160-million of the Teranga shares were distributed to Mineral Deposits shareholders on a proportional basis, with the company retaining 40-million shares, or some 16% of Teranga’s issued equity.

In December last year, Teranga entered into a $135-million stream transaction with TSX-listed Franco-Nevada Corporation to acquire the balance of the Oromin joint venture group (OJVG) gold project, in Senegal.

Earlier that year, Teranga acquired a 43.5% shareholding in the OVJG deposit in a takeover of Oromin Exploration.