Basil Read subsidiary to sell 28% stake in Majwe JV
Basil Read Mining Botswana (BRMB), a wholly-owned subsidiary of Basil Read Mining, will sell its 28% interest in the Majwe Joint Venture (JV) to Thiess Botswana and Bothakgwa Burrow Botswana (BBB) for R110.5-million.
Under the terms of the agreement, BRMB will sell 28 ordinary shares, constituting 28% of the issued shares of Majwe. Of this, Thiess will buy ten ordinary shares and BBB will buy 18 ordinary shares, constituting 10% and 18% of the issued shares of Majwe, respectively.
BRMB said in a statement published on Friday that, with its participation in the Jwaneng Cut 9 project, it would mean that BRMB would continue to be restricted from competing in Botswana as an independent entity and would limit its ability to unlock capital by growing and expanding its business in Botswana.
Participation in the project would add further “onerous obligations” on BRMB, and would offset any returns made from the project, BRMB said.
Moreover, BRMB said the Majwe JV shareholders have been engaged in negotiations to increase the local citizen economic empowerment levels from the current 12% held by BBB up to 30%, according to the tender requirement for the Cut 9 project.
In turn, this would have resulted in BRMB’s shareholding being diluted significantly, the company said.
The Cut 9 project, otherwise known as the Cut 9 contract mining project, is a mining works project for the next stage of the Jwaneng mine development.
Negotiations are still ongoing but “at an advanced stage” and the Cut 9 project is expected to start this year.
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