Hi Goalie,
De Beers press release - Details of Black empowerment deal.
In my view it appears to be of benefit to SUF...
PRESS RELEASE - DE BEERS CONSOLIDATED MINES LIMITED
De Beers signs R200 million Black Economic Empowerment Deal.
De Beers
PRESS RELEASE - DE BEERS CONSOLIDATED MINES LIMITED
E-Data Release Date: 10:36:00 29 JAN 1999 JSE Code: DBR
© 1999 E-Data
(REGISTRATION NUMBER 11/00007/06)
29 JANUARY 1999
DE BEERS SIGNS R200 MILLION BLACK ECONOMIC EMPOWERMENT DEAL
DE BEERS HAS TODAY SIGNED A DEAL THAT IS SET TO CREATE MAJOR OPPORTUNITY FOR BLACK ENTREPRENEURSHIP IN DIAMOND MINING AND EXPLORATION. THE MARSFONTEIN MINE, LOCATED IN THE NORTHERN PROVINCE NEAR POTGIETERSRUS, HAS SINCE INCEPTION IN AUGUST 1998 PROVED ITS POTENTIAL AS A HIGH YIELDING DIAMOND MINE. DE BEERS CURRENTLY HAS A 60% INTEREST IN THE MINE IN A JOINT VENTURE WITH CANADIAN-LISTED SOUTHERNERA RESOURCES. IN TERMS OF THE EMPOWERMENT AGREEMENT,
DE BEERS WILL TRANSFER ITS RIGHTS IN THE JOINT VENTURE TO A NEW COMPANY "NEWCO") WITH EFFECT FROM 1 JANUARY 1999, IN RETURN FOR A CONSIDERATION OF ABOUT R200 MILLION. DE BEERS WILL THEN SELL OFF UP TO 49% OF THIS COMPANY TO A CONSORTIUM OF BLACK ECONOMIC EMPOWERMENT PARTNERS CONSISTING OF NEW DIAMOND CORPORATION (PROPRIETARY) LIMITED ("NDC"), DOMBA INVESTMENTS (PROPRIETARY) LIMITED, UMNOTHO WE SIZWE INVESTMENT HOLDINGS (PROPRIETARY) LIMITED AND VUWANI PROJECTS (PROPRIETARY) LIMITED.
DE BEERS HAS PRICED THE TRANSACTION TO CREATE VALUE IN NEWCO FOR REINVESTMENT BY NEWCO IN FUTURE DIAMOND MINING PROJECTS. IN ADDITION, THE PARTIES HAVE AGREED NON-RECOURSE VENDOR FINANCING AT COMPETITIVE INTEREST RATES, PRINCIPALLY TO OBVIATE THE NEED FOR DEBT FUNDING BY THIRD PARTY FINANCIERS. THE PRIMARY AIM OF THE TRANSACTION IS TO DEVELOP NEWCO AND POSITION THE COMPANY TO PARTICIPATE IN FUTURE DIAMOND MINING VENTURES, SEVERAL OF WHICH DE BEERS IS PURSUING IN THE VICINITY OF MARSFONTEIN. NEWCO IS POISED TO EXAMINE THE VIABILITY OF CERTAIN EXISTING DE BEERS PROSPECTS WHICH ARE CURRENTLY LYING
DORMANT AND TO SECURE AND DEVELOP PROSPECTS IN ITS OWN RIGHT, WITH A VIEW TO CONTRIBUTING TO BLACK OWNERSHIP AND OPERATIONAL INVOLVEMENT IN THE DIAMOND INDUSTRY. THIS WILL FACILITATE THE EFFECTIVE TRANSFER OF SKILLS AND TECHNICAL EXPERTISE IN THE DIAMOND INDUSTRY TO NEWCO BY
DE BEERS, WHICH IS A RECOGNISED WORLD LEADER. THE BLACK ECONOMIC EMPOWERMENT PARTNERS THE BEE PARTNERS BRING TO NEWCO AN APPROPRIATE BLEND OF SKILLS AND EXPERIENCE TO ENSURE THAT NEWCO IS WELL PLACED TO MEET ITS OBJECTIVES. NEW DIAMOND CORPORATION, WHICH IT IS INTENDED WILL PARTNER DE BEERS ON A WIDER BASIS, HAS ALREADY PARTNERED DE BEERS IN A JOINT BID FOR THE ALEXKOR MANAGEMENT CONTRACT. NEW DIAMOND CORPORATION COMPRISES KWEZI MINING (PROPRIETARY) LIMITED, LETLOTLO INVESTMENT HOLDINGS (PROPRIETARY) LIMITED AND AFRICAN RENAISSANCE HOLDINGS LIMITED. KWEZI MINING, REPRESENTED IN NEW DIAMOND CORPORATION BY TIEGO MOSENEKE, BRINGS TO THE GROUP A MIX OF LEGAL, FINANCIAL AND TECHNICAL EXPERTISE. LETLOTLO, A COMPANY CONSISTING PRIMARILY OF BLACK MINING ENGINEERS AND GEOLOGISTS, AND REPRESENTED IN NEW DIAMOND CORPORATION BY GOPOLANG MAKOKWE, BRINGS TECHNICAL ABILITIES AND EXPERIENCE. AFRICAN RENAISSANCE, REPRESENTED IN NEW DIAMOND CORPORATION BY DR VINCENT MSIBI, WAS ONE OF THE FIRST BLACK ECONOMIC
EMPOWERMENT COMPANIES IN THE COUNTRY AND CONTRIBUTES TO THE NEW DIAMOND CORPORATION ITS BUSINESS EXPERIENCE AND KNOWLEDGE OF REGULATORY MATTERS IN SOUTH AFRICA.
DOMBA INVESTMENTS HAS A BROAD SHAREHOLDER BASE INCORPORATING PROFESSIONALS AND ENTREPRENEURS IN THE NORTHERN PROVINCE. ENOS BANDA, A DIRECTOR OF DOMBA, LOOKS FORWARD TO THE CREATION OF DOWN-STREAM OPPORTUNITIES FOR DOMBA'S SHAREHOLDERS TO PROVIDE SERVICES AS CONTRACTORS TO FUTURE PROJECTS UNDERTAKEN BY NEWCO. DE BEERS IS KEEN TO INVOLVE LOCAL COMMUNITIES IN THE ECONOMIC EMPOWERMENT PROCESS, NOT ONLY TO ENSURE THAT THEY BENEFIT BUT ALSO TO ENSURE THAT THEY HAVE
INPUT INTO DECISIONS AFFECTING THEM. UMNOTHO WE SIZWE AND VUWANI PROJECTS, REPRESENTED IN NEWCO BY VUSI NKOSI AND ESROM MATAMBUYE RESPECTIVELY, HAVE BEEN SELECTED AS SHAREHOLDERS IN NEWCO PRINCIPALLY TO ADDRESS THIS REQUIREMENT. BOTH GROUPS WILL CULTIVATE LOCAL COMMUNITY LINKS IN THE NORTHERN PROVINCE.
ENQUIRIES:
DE BEERS CORPORATE COMMUNICATIONS DEPARTMENT
TRACEY PETERSON (011)374-7388(W) 082 855 4323 (011)902-6795(H)
PRODUCED BY: RAEESA DAVIS 29-01-1999 10:33 SENS
© 1999 E-Data |
