As previously announced by Meridien Resources Limited (MRJ) on 23 January 2012, Meridien has reached an agreement to acquire 100% of the issued share capital of Stonewall Mining Proprietary Limited. The Directors of Meridien are now pleased to advise that the Share Sale Agreement (SSA) has been finalized and fully executed by all parties. The finalisation and execution of the SSA is a key milestone in moving toward the completion of the acquisition of Stonewall. In addition, Meridien is delighted to announce that Stonewall’s largest shareholder, Khan International Limited, has entered into a Subscription Agreement to invest a further US$10m into Stonewall under a Private Placement. However, given the operational progress being made by Stonewall, the decision has been taken to expedite the investment by Khan International through a Private Placement directly into Stonewall. This will allow Stonewall to access the capital earlier than originally anticipated and continue to advance operations in South Africa and build value for all stakeholders.
Commenting on the execution of the SSA and US$10 million subscription by Khan International, Nathan Taylor, Chairman of Meridien said “we are delighted to have now finalized and executed the SSA to acquire Stonewall. Our due diligence has identified the vast strengths of Stonewall’s assets and the benefits of working with their highly credentialed board and management team. Further, the investment by Khan International is a major achievement given current market conditions and is a clear endorsement by our Chinese Partner of the Stonewall business model, strategy and team. We look forward to continuing to work with the Stonewall team to build South Africa’s New Gold Mining Powerhouse.”
Tags: acquisition, Meridien Resources, mining, MRJ, Stonewall Mining
