Trustco Group Holdings and its partners have been offered N$817.3 million (US$50 million) to offload their 70% stake in a Sierra Leone diamond mining company, Meya Mining.
Trustco Resources, a subsidiary of Trustco, owns 65% of Meya Mining, with the local Sierra Leonean partner, Germinate SL Limited, owning the remaining 35% stake.
Trustco shareholders are advised that Trustco Resources (Mauritius) a 100% owned subsidiary of Trustco Resources (Proprietary) Limited and Meya a 65% owned subsidiary of Trustco Resources, Germinate (SL) Limited a 35% shareholder of Meya and an independent third party received a term sheet in terms of which an independent third party shall obtain an option to subscribe for such a number of shares in Meya that it shall have an option to become a shareholder in Meya for up to a 70% for a maximum subscription amount of USD50 million.”
The offer, according to the listed company, is subject to its board and regulatory approval, with a deal expected to be complete by the end of the month.
“It is important to note that the Term Sheet is subject to the necessary board and regulatory approvals, completion of due diligence and conclusion of definitive agreements. Shareholders are advised that it is envisaged that the agreements would be finalised at the end of July 2022.”
The latest development comes after Trustco secured a debt facility of N$US$50 million and an export credit facility of US$35.8 million for the development and expansion of the resources segment, which were expected to ensure that Meya Mining’s initial mine configuration targeting 360 000 carats per annum is fully capitalised, thus enable the mine to transition into commercial production within an 18-month period post funding.
