Shaw River increases stake in Namibia manganese project
JOHANNESBURG (miningweekly.com) – ASX-listed Shaw River Manganese on Wednesday announced that its wholly owned subsidiary Otjozondu Holdings had increased its shareholding in the Otjozondu (Otjo) manganese project, in Namibia, from 84% to 87.2%.
The company’s shareholding in the project increased as the minority shareholder in the Otjo project, Oreport Holdings, had since early 2011 elected not to fund its share of the project costs and had now again elected not to exercise its right to participate pro rata in the issue of new ordinary no-par value shares in the project’s holding company Otjozondu Mining.
Shaw River added that, through its subsidiary, it planned to fund all forward expenditure at the Otjo project by equity subscription through pro rata offers of equity by Otjozondu Mining.
Should Oreport not participate in future pro rata offers of equity by Otjozondu Mining, Shaw River, through Otjozondu Holdings, would have the opportunity to further increase its interest in Otjozondu Mining and the Otjo project.
Shaw River also noted that its subsidiary had pre-emptive rights covering Oreport’s minority shareholding in Otjozondu Mining, which had been flagged for sale, and stated that it would consider these rights should a suitable buyer for Oreport’s shareholding be identified.
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