Mineral exploration and development company Giyani Metals has signed an agreement to sell its 45% interest in Rock Island Trading, a South African gold exploration company, for ZAR9.55m (approximately $868,000) in cash.
Giyani signed a definitive sale of shares agreement with its South African partner, Corridor Mining Resources (CMR).
Under the terms of the agreement, CMR will purchase Giyani’s 45% interest by paying one third of the aggregate cash consideration.
The company intends to pay the remaining balance following the approval of respective South African regulatory conditions, which also include Ministerial consent to the sale required under South African law.
The necessary conditions are expected to be satisfied and closed by the end of the first quarter next year.
Giyani Metals CEO Robin Birchall said: “We are extremely pleased to have concluded this sale to our South African partner CMR.
“Rock Island was a non-core asset that we have had on our books for a very long time and we are very happy to have been able to now monetise its value into cash consideration that will be used for the development of our manganese project in Botswana.
“This transaction also signifies a formal departure from our gold exploration past in South Africa and allows us to focus on developing a battery grade manganese project to serve the growing global electric vehicle market.”
In July this year, the company secured approvals from the Department of Environmental Affairs (DEA) in Botswana to implement environmental management plans (EMPs) at its K.Hill and Otse manganese prospects.