Trustco's Huso deal still pending
Trustco''s acquisition of Huso Investments has not yet been completed because of a backlog in issuing mining licences.
Trustco this week announced that its intended acquisition of mining and resources subsidiary Huso Investments had not been concluded, almost a year after Trustco first made the announcement.
Explaining the delay, Trustco said: “On 5 October 2015, Trustco announced the shareholders'' approval of the merger transaction between the Huso group, owned by Dr Quinton van Rooyen, and Trustco. The finalisation of the Huso transaction was not yet completed due to an outstanding condition of acquisition, namely the issuance of the mining licence.”
The backlog, Trustco explained, had arisen out of a delay on the part of the Ministry of Mines and Energy, which has the mandate to issue mining licences.
Van Rooyen had previously stated that the Huso deal was expected to benefit approximately 2 500 Namibians.
“Opportunities in the diamond sector are very scarce, especially a vertically integrated business model within the diamond value chain. More than 2 500 Namibian shareholders in particular will benefit directly from the exploitation of the natural resources of Namibia. Local beneficiation will stimulate this sub-sector due to the vertically integrated model of Huso,” he said.
The Trustco Group also announced that work had started on an extensive 18-month diamond drilling programme in Sierra Leone.
“On 17 October 2016, the Sierra Leone exploratory diamond drilling operations commenced. The phase 1 exploration programme includes a 5 000-metre diamond drilling and 15 000-ton bulk sampling programme. To date, 1 000 metres have been drilled and results are encouraging. The bulk sampling plant is designed, manufactured and constructed by experts in this field and is expected to be commissioned in June 2017,” Trustco announced.
“A Canadian firm with a wealth of international mining experience has been appointed to act as competent person and oversee the resource development programme including the resource estimation and conceptual mine plan,” Trustco added.
According to Trustco, the exploration work is expected to be completed within the next 18 months.
Under an exclusive off-take agreement between Meya Mining and Morse Investments (a subsidiary of Huso), the supply of rough diamonds to Trustco''s diamond cutting and polishing operation will further bolster the resources segment''s performance.
OGONE TLHAGE
Explaining the delay, Trustco said: “On 5 October 2015, Trustco announced the shareholders'' approval of the merger transaction between the Huso group, owned by Dr Quinton van Rooyen, and Trustco. The finalisation of the Huso transaction was not yet completed due to an outstanding condition of acquisition, namely the issuance of the mining licence.”
The backlog, Trustco explained, had arisen out of a delay on the part of the Ministry of Mines and Energy, which has the mandate to issue mining licences.
Van Rooyen had previously stated that the Huso deal was expected to benefit approximately 2 500 Namibians.
“Opportunities in the diamond sector are very scarce, especially a vertically integrated business model within the diamond value chain. More than 2 500 Namibian shareholders in particular will benefit directly from the exploitation of the natural resources of Namibia. Local beneficiation will stimulate this sub-sector due to the vertically integrated model of Huso,” he said.
The Trustco Group also announced that work had started on an extensive 18-month diamond drilling programme in Sierra Leone.
“On 17 October 2016, the Sierra Leone exploratory diamond drilling operations commenced. The phase 1 exploration programme includes a 5 000-metre diamond drilling and 15 000-ton bulk sampling programme. To date, 1 000 metres have been drilled and results are encouraging. The bulk sampling plant is designed, manufactured and constructed by experts in this field and is expected to be commissioned in June 2017,” Trustco announced.
“A Canadian firm with a wealth of international mining experience has been appointed to act as competent person and oversee the resource development programme including the resource estimation and conceptual mine plan,” Trustco added.
According to Trustco, the exploration work is expected to be completed within the next 18 months.
Under an exclusive off-take agreement between Meya Mining and Morse Investments (a subsidiary of Huso), the supply of rough diamonds to Trustco''s diamond cutting and polishing operation will further bolster the resources segment''s performance.
OGONE TLHAGE
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