“The disposal of this non-core holding is in line with Northam’s strategy of rationalising its asset portfolio, and focusing on growing its PGM (platinum group minerals) business into shallow, mechanisable orebodies,” comments Northam chief executive, Paul Dunne.
The transaction has realised a total cash consideration of R81,8m for the company, which represents a 7,6% premium on the 30-day volume weighted average price of a Trans Hex share on the day prior to the transaction. The funds will be allocated towards developing the company’s internal project pipeline.
Northam’s stake in Trans Hex dates back to 2011 with the unbundling of Mvela Resources. In terms of the transaction, Mvela Resources became a wholly-owned subsidiary of Northam and was delisted from the JSE. Northam acquired Mvela's remaining assets, which included a 20,3% stake in the diamond miner.
