MIDDLE EAST DIAMOND RESOURCES LIMITED - Proposed acquisition of Stepford gold deposit and cautionary announcement
Proposed acquisition of Stepford gold deposit and cautionary announcement
MIDDLE EAST DIAMOND RESOURCES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2001/006539/06)
(Share Code: MED ISIN Code: ZAE000211876)
(“MEDR” or “the company”)
Proposed acquisition of Stepford gold deposit and cautionary announcement
1. Introduction
Shareholders are advised that MEDR entered into a Heads of Agreement on 9 November
2020 with Stepford Company Limited (“Stepford”) , a company incorporated in Ghana to
acquire 50% of the issued shares of and claims in Stepford from the shareholders of
Stepford with effect from the date that all conditions precedent below have been met (“the
Transaction”).
2. Rationale
MEDR has widened the search for suitable assets to acquire to include the rest of Africa and
in particular has focussed on the acquisition of gold and copper assets in Africa.
MEDR announced the acquisition of Casa Mining Limited (“Casa”) on 9 November 2020
which owns a sizeable gold asset in the DRC with 3 million ounce JORC Inferred Resource,
which is currently being converted to a SAMREC defined resource.
Geochemical sampling in the area held by Stepford indicates the potential for a large gold
resource over an area of approximately 3km2. The licence area is adjacent to the Newmont
Ahafo mine which produces approximately 650 000 ounces per annum from a Proven and
Probable Reserve base of nearly 10m ounces.
It is anticipated that the Stepford Prospecting licence will be converted to a Mining Licence
by April 2022.
3. Salient terms of the Transaction
Stepford owns the Prospecting Licence on 101.22 km2 of ground in the Asutifi district of the
Brong Ahafo region of Ghana. . The purchase price is $200 000 payable in cash. MEDR will
manage and fund the exploration programme via a loan account of $3 million.
4. Conditions precedent
The Transaction is subject to the parties entering in formal agreements.
5. Categorisation of Transaction
The Transaction is a category 2 transaction and does not require shareholders’ approval.
6. Financial information and cautionary announcement
The financial information relating to the Transaction will be available in due course.
Accordingly Shareholders are advised to exercising caution when dealing in the company’s
shares until the financial information is released.
10 November 2020
Sandton
Sponsors
Exchange Sponsors
Date: 10-11-2020 10:36:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
