Randgold & Exploration Company has entered into a partnership with the empowerment consortium Phikoloso Mining, Randgold announced on Monday.
Randgold is to issue 8,8-million new ordinary shares, valued at some R268-million, to Phikoloso Mining which in return will transfer its mining-related assets to Randgold.
Following this transaction, Phikoloso Mining will hold a 17% (fully diluted) interest in Randgold.
Randgold’s JSE share counter dropped by 4,6% in early trade on Monday to R29,50.
Randgold director — and JCI chief executive — Brett Kebble said the deal would create a New South African resource business, aligned with the principles of the New Partnership for Africa’s Development as well as the requirements of the Mining Charter.
Among the assets Randgold & Exploration will acquire through this process are holdings in Anglo Platinum, Harmony Gold and Afrikander Lease, as well as a participation in Kabusha Mining and Finance, which owns 23-million shares in Afrikander Lease.
The Randgold & Exploration board is to be reconstituted under chairman Roger Kebble to include Lunga Ncwana, who heads Ituseng Mining; Chris Nissen, head of New Line Investments and chairman of the Cape Chamber of Commerce; Advocate Brenda Madumise, head of the women”s empowerment group Khomelela; and JCI chief executive Brett Kebble.
Grant Fischer has resigned and Hennie Buitendag and David Ashworth will remain on the board.
Said Ncwana: ”This deal provides Phikoloso Mining with a unique opportunity for significant, genuine and sustainable BEE participation in the mining industry.
”It gives us a stake in Randgold & Exploration”s highly successful international gold business, Randgold Resources, and in the upside of its South African operation, Minrico.
”Equally importantly, the wide range of technical skills available from Mark Bristow and his team at Randgold Resources, Roger Kebble’s mentoring role and Brett Kebble”s dealmaking and financing expertise, will support the optimal development of the resource opportunities and future deals Phikoloso Mining will be bringing to Randgold & Exploration.”
Brett Kebble said the transaction opened the way for Randgold to become the vehicle for all JCI’s mining interests, with JCI focusing on its empowerment financing objectives.
”Randgold & Exploration is fully committed to the successful transformation of the South African mining industry through black economic partnerships and initiatives,” he said.
Randgold recently also concluded a deal in which it gave Marothodi Resources — now a member of the Phikoloso consortium — a 26% stake in its mineral rights management company Minrico, currently being developed into a fully fledged exploration business.
Kebble said it was intended to increase the BEE equity stake in Randgold to 26% over time, in order to fully meet the requirements of the Mining Charter.
Following the issue of the 8,8-million shares, the largest shareholder group in Randgold & Exploration remains the US ADR holders, with 27,74% of the equity (currently 33,71%). JCI will hold 18,33% (22,28%). – Sapa