By Business Reporter
WEATHERLY International has entered into a binding agreement to increase its ownership of private Namibian company China Africa Resources Namibia (CARN) from 25 percent to 90 percent.
CARN, which owns 100 percent of the high-grade Berg Aukas underground zinc, lead, vanadium project near Grootfontein, in Namibia, was previously 100 percent owned by former Aim-listed China Africa Resources (CAR), which is now known as the LSE-listed Pembridge Resources.
In December 2016, 100 percent of the shares in CARN were distributed through a dividend to existing shareholders of CAR. The two largest shareholders of CAR, at the time, were Weatherly with 25 percent and Hong Kong East China Non-Ferrous Mineral Resources (ECE) with 65 percent.
As a result, Weatherly owns 25 percent of CARN, ECE owns 65 percent of CARN, and the remaining 10 percent of CARN is held by the remaining minority shareholders of CAR at the time of the dividend.
Weatherly and ECE have now entered into a binding agreement whereby Weatherly will buy all of ECE’s shares in CARN for US$600 000.
The transaction is subject to regulatory approval in Namibia, following which the full consideration will be paid to ECE immediately. The company expects to fund the transaction through operating cash flow but in the event that it cannot, Weatherly has obtained a waiver from Orion Mine Finance to use part of the uncommitted US$10-million loan announced on July 28 last year to fund the transaction.
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