Junior South African gold company Randgold & Exploration on Tuesday announced that it had sold one million of its shares in London listed Randgold Resources, thereby reducing its stake in the company from 48,2% to 45%.
The shares have been placed with a range of institutional investors.
Chairperson Roger Kebble said the sale would realise some R124-million, of which R45-million will be used to settle some of the debt in Randgold & Exploration and R79-million to support the development of the group’s South African business plans.
The sale will further enhance the share liquidity of Randgold Resources and broaden that company’s shareholder base, particularly in the London market.
Randgold & Exploration recently announced that it had concluded an agreement in terms of which Marathodi Resources, a black empowerment company, would acquire a 26% interest in its subsidiary, Minrico.
“Using the extremely successful model we applied to Randgold Resources, Randgold & Exploration and Marathodi will seek to build Minrico into a profitable exploration, development and mining business, geared to the needs of the new South Africa,” Kebble said. – I-Net Bridge