JOHANNESBURG (miningweekly.com) – Diversified mining company Sentula Mining will sell its 50.5% shareholding in Sentula Coal to mining services provider Close-Up Mining.
Under the terms of the deal, Sentula would dispose of its claims against Sentula Coal in the amount of R50-million to Close-Up, which will, in turn, issue 2 667, or 40%, of its shares to Sentula.
Existing Close-Up shareholders would transfer R10-million of their existing claims against Close-up in favour of Sentula.
Further, Sentula’s 83%-owned Benicon Opencast Mining subsidiary, which served as a subcontractor to Sentula Coal on certain Anglo Coal contracts, would dispose of certain selected plant and equipment to Sentula valued at open market value for R50-million.
The plant and equipment would then be sold to Sentula Coal for R50-million.
Sentula noted that the age of Benicon’s equipment had negatively impacted on Sentula Coal’s ability to meet the requirements of the Anglo Coal contracts. The merger was seen as an alternative to the significant investment needed to replace Benicon’s ageing equipment.
“Close-Up and Sentula have identified synergies for the development of joint opportunities in the provision of opencast mining services. Close-Up has the necessary equipment, operational and management resources, and Sentula Coal provides certain equipment, labour and access to mining volumes through established contracts,” Sentula explained.
Sentula Coal was employing a substantial number of Benicon employees and acquiring selected plant and equipment.
From July 1, Sentula Coal would be responsible for all Anglo Coal contracts historically executed by Benicon.