M&As this week: Sentula Mining, Lithium Australia
Sentula Mining has entered a merger agreement with Close-Up Mining Proprietary.
Under the agreement, Sentula will dispose its 50.5% share in Sentula Coal to Close-Up Mining Proprietary for ZAR50.50 ($4.15) in cash.
Close-Up Mining Proprietary will allot and issue 2,667 ordinary shares of no par value to Sentula, representing 40% of the its shares in issue.
Shareholders of Close-Up will also transfer ZAR10m ($0.82m) of their existing claims in favour of Sentula.
Upon completion of the transaction, Sentula Mining will hold 40% of the shares in Close-Up. While Close-Up will hold 50.5% of the shares in Sentula Coal, in addition to its existing opencast mining operations.
Sentula Coal will own certain plant and equipment previously owned by Benicon Opencast Mining Proprietary, an 83% subsidiary of Sentula Mining.
Lithium Australia has completed the acquisition of Lithophile. It will provide Lithium Australia the ownership rights to three lithium prospects within the Gascoyne Complex located 750km north of Perth, Australia.
The transaction involved a payment of A$0.06m ($0.04) in cash by Lithium Australia to Lithophile. It also comprises issuance of 500,000 fully paid ordinary shares to Lithophile, and an additional 500,000 partly paid ordinary shares priced at A$0.25 ($0.18) a share to the recipient's vendors.