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Manyame supports Metallon listing

MANYAME Consortium (Manyame) chairman John Mkushi this week said his grouping supports Metallon Gold SA (Metallon)’s intended listing although they were not actively involved in the listing process.

ce=”Verdana, Arial, Helvetica, sans-serif”>He said Manyame remained the South African gold miner’s legal empowerment partner and they were analysing the implications of the public offer on their investment.

This comes in the wake of revelations last week that Metallon owners had reclaimed total control of the gold-mining group and that they had informed the Ministry of Mines of their intention to take on board new empowerment partners.

“We are still part of Metallon through our shareholding in the Zimbabwean subsidiary,” Mkushi said on Wednesday.

“We obviously support the listing, although it comes with implications to shareholders,” he said, adding Manyame was carefully studying the potential outcomes or alterations.

Metallon is targeting a listing on the JSE Securities Exchange (JSE) by end of April.

Although Manyame principals were aware of the intended listing, Mkushi said they had not been formally informed nor were they privy to details of how the listing procedures had progressed.

Mzi Khumalo’s investment vehicle Metallon Corporation, a company official said last week, would take up to 50% of the listed entity, Metallon.

A parent company to Metallon Gold Zimbabwe (MGZ), the SA firm’s main assets are based in Zimbabwe.

The Metallon group is arguably Zimbabwe’s largest gold producer, with 195 000 ounces of gold a year.

When Mkushi’s consortium bought a 30% share in MGZ, they were asked

to pay US$9 million — a figure arrived at after reevaluation of the mine’s assets just months after Khumalo had paid US$15,5 million for the former Lonmin mines.

Mkushi told this paper that the deal was structured on Metallon’s terms, although they were agreeable to it. He would not say how much they had paid towards the capital account so far.

Meanwhile, Stanmarker’s case against Metallon has been postponed until the first week of the High Court vacation, a postponement which was considered at Metallon lawyers’ request.

Trial had been slated for commencement on February 21. — Staff Writer.

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