SMA exits Guinea assets, eyes new venture
JOHANNESBURG (miningweekly.com) – Aim-listed Sovereign Mines of Africa (SMA) is exiting its 75% interest in the Mandiana gold project, in Guinea, following a strategic review of the company’s assets.
While the transaction will leave SMA as an Aim Rule 15 cash shell, with six months to make an acquisition constituting a reverse takeover or risk a trading suspension, the company assured shareholders it had entered into an exclusivity agreement to acquire new undisclosed assets in the mining industry.
“The company is in a transitional period while we execute our new vision following a detailed strategic review which includes a potential acquisition within the mining industry,” SMA chairperson Giles Clarke said in a statement on Monday.
A detailed due diligence is under way, with the company to make further announcements in due course.
“The board has been conducting a strategic review of the company’s assets and activities over the preceding ten months, which has included the decision to not continue to fund the development of its Guinean assets,” he explained.
The Guinean assets, after a writedown during the year ended December 2015, are held as a zero value in SMA’s books, which also recorded losses of £162 317 in the same year.
SMA entered an agreement with TSX-V-listed Volcanic Metals to farm out its assets, with SMA receiving 9.9% of the outstanding share capital of Volcanic.
“This is an important step for the company and realises immediate value for shareholders, while retaining an interest in the future of the Mandiana gold project,” Clarke said.
“The farm-out of the Mandiana gold project forms part of an overarching strategy to enhance shareholder value. It is the company’s intention to hold its interest in Volcanic Metals for such time that maximises shareholder value,” he added.
The transaction remains subject to a number of conditions.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation















