15 Apr 2014 17:00pm
WINDHOEK, 15 APR (NAMPA) Talks are underway between Epangelo and United Kingdom (UK)-based mining company QKR Corporation for Epangelo Mining to participate in the Navachab Mine project, which is being acquired by QKR from AngloGold Ashanti.
QKR Corporation Limited, acting through its Namibian subsidiary is pleased to announce that it is in significantly progressed discussions with Epangelo Mining Company for its participation in the Navachab Gold Mine, a joint press statement issued by the two companies (Epangelo and QPR) said on Tuesday.
Epangelo is the Namibian Governments wholly owned mining investment company, while QKR is a private mining company focused on acquiring and building a diversified portfolio of development and growth assets in the mining industry in Europe and America.
In February 2014, AngloGold Ashanti announced its sale of the Navachab mine to QKR, based on an enterprise value of US$110 million (approximately M.dollars 1.2 billion) plus deferred consideration in the form of a net smelter return.
The transaction was subject to the fulfilment of a number of conditions, including Namibian and South African regulatory approvals. The completion of this transaction is expected to materialise over the coming months.
Epangelo's participation in Navachab would be facilitated following the completion of the transaction, said the statement without indicating how much equity Epangelo Mining is negotiating for.
Lloyd Pengilly, President of QKR, said in a statement: We are pleased at the prospect of welcoming Epangelo as a future shareholder and partner in Navachab. The mine is an important project for the country and we are committed to ensuring that its success is shared for the benefit of all Namibians.
Meanwhile, Eliphas Hawala, Managing Director of Epangelo was quoted as saying Epangelo Mining was founded to support Namibias participation in the country's growing natural resources industry.
Navachab has an exciting future ahead with QKRs investment, and we are delighted to have the opportunity of partnering with QKR in delivering Navachabs next phase of growth and QKRs long-term plans, he said.