Photo by: Bloomberg
JOHANNESBURG (miningweekly.com) – Second-tier diamond producer Trans Hex has moved to offload subsidiary Pioneer Minerals for R35-million in cash, constituting the final step of a strategic process, initiated in March 2007, to dispose of the group’s mining and prospecting projects located between Douglas and Prieska in the Middle Orange River region of the Northern Cape.
Trans Hex said on Friday that the unnamed buyer of Pioneer, which holds a diamond mining right on the farm Remhoogte, owned other diamond mining and prospecting operations in the Middle Orange River region and, therefore, already had a regional presence and extensive local knowledge.
The deal includes a marketing agreement in terms of which Trans Hex would retain the right to market all diamonds produced at Remhoogte.
The disposal remained subject to consent for the deal from the Mineral Resources Minister, as well as Trans Hex being satisfied that the guarantee provided by the buyer to the Department of Minerals Resources would result in the transfer of the environmental rehabilitation liability associated with Remhoogte to the buyer.