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Stonewall sells S Africa subsidiary to China’s Shandong

22nd November 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Gold developer Stonewall Resources has agreed to sell its majority-owned subsidiary Stonewall Mining to China’s Shandong Qixing Iron Tower Company for $141.5-million.

Stonewall Resources’ share of the cash consideration amounted to some A$124.39-million.

In May this year, Stonewall alerted shareholders that it had entered into a conditional agreement with Shandong regarding the possible sale of South Africa-focused Stonewall Mining.

The Stonewall board of directors has now unanimously recommended that shareholders vote in favour of the transaction at a forthcoming shareholder meeting.

Chairperson David Murray said on Friday that the signing of a sales agreement reflected a great achievement for all parties.

“The offer is the culmination of Stonewall’s announced process of May, and delivers significant benefit to both companies and allows shareholders to receive significant value premium to recent trading levels and the certainty of a cash transaction.”

Stonewall Mining holds a range of prospective gold assets, most of which are located in South Africa. The assets include several instances of surface and near-surface gold mineralisation.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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