JOHANNESBURG (miningweekly.com) – JSE-listed Middle East Diamond Resources’ (MEDR’s) Sable Platinum Holdings (SPH) subsidiary has entered into an agreement to acquire diamond exploration company Blain Capital Solutions’ Kamfersdam dumps, in Kimberley, in the Northern Cape, for R14-million.
The assets on sale include equipment and the residue stockpile in situ on the dumps.
The R14-million purchase price may be reduced if the profit target of R3.45-million every six months for a period of 24 months after the effective date, achieved through the sale of diamonds, is not met.
The purchase price will be settled through the issue to Blain of 40-million MEDR shares at a price of 35c a share.
Under the terms of the agreement, Blain will render certain services, including the treatment of the residue stockpile, the provision of vehicles, plant, equipment and capital required for the mining, removal and treatment of the stockpile and rehabilitation, to SPH.