Sephaku sells interests to focus on core businesses

Sephaku sells interests to focus on core businesses
Published: 08 January 2010

Recently listed minerals and cement company Sephaku Holdings had sold some of its gold and nickel interests to investors including Hong Kong-headquartered Mandra Capital for R80m in cash, it said yesterday.

Shares in Sephaku, which listed on the JSE in August, were unchanged at 350c yesterday, compared with 629c on its first day of listing.

The group, which is focusing on building a cement plant and a fluorspar mine, said it had agreed to sell its 26% stakes in Taung Gold and African Nickel to Mong Seng Wu, Mandra Capital and/or their nominees, subject to various approvals. The payment will be made in cash in four instalments over the next 12 months.

Taung Gold has two main advanced-stage exploration projects: the Jeanette Hilton property in the Free State and the Evander project in Mpumalanga. There are less advanced projects in the South Rand in Gauteng. African Nickel has five exploration projects in SA: Groblersdal, Davel and Firsthope are greenfields, while Bon Accord and Koster have been partly explored.

The deal would enable Sephaku to dedicate its resources to its cement and fluorspar projects and provide working capital, it said.