Trustco Group Holdings says its disinvestment from Sierra Leone diamond mining company Meya Mining will allow it to transition into a fully-fledged investment entity operating within the emerging markets.
This was after the company received a N$817.3 million (US$50 million) offer from SJSL Investments Limited.
“This transaction enables Trustco to partially exit its investment in Meya in accordance with the Group’s investment strategy. The transaction would enable Meya to scale production at an accelerated pace. This would allow Trustco to re-balance the bigger investment portfolio,” the company said in its latest SENS announcement.
The deal, which will be executed in seven tranches, if all conditions are met, will allow SJSL Investment to emerge with a 70% stake in the diamond mining company, with proceeds to be invested in the company.
“Proceeds from the first and second tranches, and if required a portion of the proceeds from the third and fourth tranches shall be used to fund the Meya Resource Statement. The balance of the proceeds from the Subscription Proceeds shall be used for the implementing of the Mine Plan and to increase production.”
Meya Mining is a Mauritius registered company which holds and operates a diamond mine in Sierra Leone and its primary focus is to implement an underground mine plan in accordance with the 15-year mine design and schedule as reviewed by SRK.
Meya’s initial exploration programme in Sierra Leone indicates a resource of 7 million carats, which underpins the above mentioned 15-year mine plan.
Meya initiated the underground mine development in January 2021 and at the current development rate, Meya will extract the first ore from the underground mine in September 2022 and the first diamonds to the market by November 2022.
Trustco is a listed Namibia-headquartered company with operations in insurance and investments, resources, and banking and finance.
