JOHANNESBURG (miningweekly.com) – JSE-listed Miranda Mineral Holdings, together with its wholly-owned subsidiary Miranda Coal, will sell its 73% shareholding in Sesikhona Klipbrand colliery, in KwaZulu-Natal, to Osho SA Coal for R5-million, payable in two tranches.
The parties are currently involved in litigation arising from the provisions of a term sheet entered into in December 2011 and have signed a consent letter in which they agree to stay the litigation proceedings until such time as the agreement fails to take effect or litigation is withdrawn and terminates if and when the agreement takes effect.
Miranda said the disposal of the noncore asset would generate cash and free up management to focus on completing the company’s restructuring and rebuilding process.
The transaction proceeds would also be used for general working capital and to finalise its financial results, to apply for the lifting of the suspension of the company’s shares on the JSE.