Trans Hex and De Beers Rewrite Namaqualand Deal

namaqualand minesThe Johannesburg Stock Exchange (JSE)-listed Trans Hex reported on the 8th of August 2012 that the transaction price for the acquisition of De Beers Consolidated Mines South Africa’s (DBCM’s) Namaqualand Mines has been lowered to R166-million to provide for an environmental rehabilitation liability.

The original transaction price, announced in May 2011, was R225-million. The Namaqualand mines are close to Trans Hex’s Baken alluvial-mining operations on South Africa’s West Coast.

Following negotiations between Trans Hex and DBCM, the terms of the proposed transaction have been amended so that DBCM would retain an excess of 50% of the Namaqualand environmental rehabilitation liability.

Trans Hex believed that the exclusion of the BMC assets and liabilities from the proposed transaction significantly reduced the risk for Trans Hex as the environmental liability associated with the BMC constituted a substantial proportion of the original environmental rehabilitation liability. BMC was also a lower-priority asset in comparison with the Buffels River and Koingnaas Complex assets, which remained in the proposed transaction.

Trans Hex will have a 50% shareholding in Namaqualand, with the balance to be held by RECM and Calibre (34%) and Dinoka (11%), while the Namaqualand Diamond Fund Trust, which is representing communities, would own 5%. 

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