| Fri 1 Sep 2023, 10:40 | | SABLE EXPLORATION AND MINING LIMITED - Establishment of Joint Venture for beneficiation of Dense Medium Separation grade magnetite for coal beneficiation |
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Establishment of Joint Venture for beneficiation of Dense Medium Separation grade magnetite for coal beneficiation
Sable Exploration and Mining Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2001/006539/06)
(Share Code: SXM ISIN Code: ZAE000303319)
(“SEAM” or “the company”)
Establishment of Joint Venture for the beneficiation of Dense Medium Separation grade
magnetite for coal beneficiation
Shareholders are advised that Sable Platinum Holdings (Pty) Limited (“SPH”), a wholly owned
subsidiary of SEAM has on 31 August 2023 entered into an agreement, with IPace (Pty) Limited
(“IPace”), for the establishment of an unincorporated joint venture to conduct the business of
commissioning, operating and maintaining of a Dense Medium Separation (“DMS”) beneficiation
plant and to sell the product (“UJV”).
IPace is a joint venture between Ironveld Mining (Pty) Limited (“Ironveld Mining”), a subsidiary of
Ironveld Plc (listed on the AIM market in London) and Pace SA (Pty) Limited. The plant will be
based on Ironveld Mining’s Lapon mining right and will utilise ore from the mining operations to
supply the plant. IPace is the operating partner and will be responsible to erect, operate and
maintain the plant and the marketing of the product. It is estimated that at full production the plant
could produce approximately 10 000 tonnes per month of DMS grade magnetite.
The beneficiation plant will be owned by Lapon Plant (Pty) Limited (“Lapon Plant”), a wholly owned
subsidiary of SPH, and the UJV will lease the plant from Lapon Plant. The estimated capital cost
of the beneficiation plant is R 15 million and SPH will provide the funding to Lapon Plant. Once
the funding plus interest has been recovered by SPH it will transfer at R 1 per share 50% of Lapon
Plant to IPace.
The funding of R 15 million will be obtained by SEAM from the already announced rights issue of
R 52,2 million. To commence the process of erecting and commissioning the beneficiation plant,
SEAM has agreed with PBNJ Trading and Consulting (Pty) Limited, a material shareholder in
SEAM, to advance a loan of R 17 million to SEAM to be repaid from the proceeds of the rights
issue.
This is an exciting opportunity for SEAM to invest in a cashflow generating business. SPH and
IPace have agreed that an investment in a larger plant will be considered once the proposed plant
has reached its full capacity. This announcement is a voluntary announcement.
1 September 2023
Sandton
Sponsors
Exchange Sponsors
Date: 01-09-2023 10:40:00
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