Matodzi - Proposed disposal by Letseng Holdings an
MTZ
MTZ
Matodzi - Proposed disposal by Letseng Holdings and further cautionary
Matodzi Resources Limited
(Incorporated in the Republic of South Africa)
(Registration number 1933/004523/06)
Share code: MTZ & ISIN: ZAE000042412
("Matodzi")
THE PROPOSED DISPOSAL BY LETSENG INVESTMENT HOLDINGS (SOUTH AFRICA)
(PROPRIETARY) LIMITED, IN WHICH MATODZI HAS A 50% EQUITY INTEREST, OF ITS 76%
SHAREHOLDING IN LETSENG DIAMONDS (PROPRIETARY) LIMITED TO GEM DIAMOND MINING
COMPANY OF AFRICA LIMITED AND FURTHER CAUTIONARY ANNOUNCEMENT
Further to the various cautionary announcements published in the press between
12 April 2005 and 16 May 2006, Tlotlisa Corporate Finance (Proprietary) Limited
("T-Corp") is authorised to announce that Letseng Investment Holdings (South
Africa) (Proprietary) Limited ("Letseng Holdings"), a 50%-owned subsidiary of
Matodzi, has entered into a binding legal agreement with Gem Diamond Mining
Company of Africa Limited ("Gem") for the disposal by Letseng Holdings of its
entire 76% equity interest in Letseng Diamonds (Proprietary) Limited ("Letseng
Diamonds") to Gem for a purchase consideration of R879.5 million, payable in
cash ("the proposed transaction").
Letseng Diamonds is a Lesotho registered company which holds the mining rights
and operational assets of the Letseng diamond mine located in the mountains of
the Kingdom of Lesotho ("Lesotho").
The Matodzi board of directors has approved the proposed transaction, which is
subject to the fulfilment of certain conditions precedent, including, inter
alia, the necessary shareholder and regulatory consents being obtained,
including the approval of the Government of Lesotho, which owns the remaining
24% equity interest in Letseng Diamonds. The other shareholders in Letseng
Holdings are JCI Limited, which has a 40% equity interest and Letseng Diamonds
Limited which has a 10% equity interest.
Accordingly, shareholders are advised to continue to exercise caution when
dealing in their Matodzi shares until a detailed announcement is made in this
regard.
Sandton
26 June 2006
Corporate Advisor: T-Corp
Sponsor: Sasfin Capital
Corporate Law Advisor to Matodzi: Edward Nathan Corporate Law Advisors
Corporate Law Advisor to Letseng Holdings: Tabacks
Date: 27/06/2006 08:30:05 AM Produced by the JSE SENS Department
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