Metorex Sells 15% Stake in Vergenoeg Mining

29 July 2009 (Last Updated July 29th, 2009 18:30)

African miner Metorex has entered into an agreement to sell 15% of its interest in Vergenoeg Mining to a consortium of black economic empowered entities. Under the all cash agreement, Metorex will sell 37,500 Vergenoeg shares to Medu Capital for R108.7m, reducing its interest in Verge

African miner Metorex has entered into an agreement to sell 15% of its interest in Vergenoeg Mining to a consortium of black economic empowered entities.

Under the all cash agreement, Metorex will sell 37,500 Vergenoeg shares to Medu Capital for R108.7m, reducing its interest in Vergenoeg to 55%.

The deal is an important step in the transformation of Metorex and will enhance the company's liquidity position, Metorex CEO Terence Goodlace said.

”I am pleased to welcome Medu Capital to the fold and look forward to their contribution and participation at our Fluorspar operations,” Goodlace said.