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Voluntary Announcement: Meerust Chrome Proprietary Limited Operational Update
MANTENGU MINING LIMITED
Incorporated in the Republic of South Africa
(Registration number 1987/004821/06)
Share code: MTU ISIN: ZAE000320347
("Mantengu")
VOLUNTARY ANNOUNCEMENT: MEERUST CHROME PROPRIETARY LIMITED OPERATIONAL
UPDATE
1. Introduction
Shareholders are referred to the announcements released on SENS on:
1.1 2 August 2024 wherein it was advised, inter alia, that New Venture Mining Investment Holdings
Proprietary Limited ("NVMIH") had cancelled the Transfer of Mining Right Agreement and the
Contractorship Agreement with Birca Copper and Metal Proprietary Limited ("BCM") ("the NVMIH
Cancellations");
1.2 7 August 2024 wherein it was advised that, primarily on account of the NVMIH Cancellations, the
board of BCM took the decision to place BCM into Business Rescue as set out in terms of Section
129 of the Companies Act, 2008 (Act 71 of 2008) ("Business Rescue"), as amended, to facilitate
the rehabilitation of BCM and that Mr Thomas Samons has been appointed as the Business Rescue
Practitioner ("BRP"); and
1.3 8 August 2024 wherein it was advised, inter alia, that:
1.3.1 Meerust Chrome Proprietary Limited ("Meerust Chrome"), a wholly owned subsidiary of
Mantengu, had entered into a transfer of mining right agreement dated 6 August 2024
("Signature Date") with NVMIH, being the registered and 100% beneficial owner of the
Mining Right on the Signature Date, for the acquisition of the Mining Right ("NVMIH Mining
Right Agreement") ("NVMIH Mining Right Acquisition"); and
1.3.2 contemporaneously with the NVMIH Mining Right Agreement, Meerust Chrome had entered
into a sale and contractorship agreement dated 6 August 2024 with NVMIH in terms of which
Meerust Chrome is entitled to mine and process chrome ore ("Sale and Contractorship
Agreement") until the successful transfer of the Mining Right from NVMIH to Meerust
Chrome in terms of the NVMIH Mining Right Agreement.
2. Agreements of lease in respect of chrome wash plant and surface rights
2.1 Introduction
Surface rights lease
2.1.1 Shareholders are referred to the announcement released on SENS on 13 May 2024
regarding the BCM Acquisition ("BCM Announcement"). As set out in the BCM
Announcement (and using the terms defined therein unless otherwise stated herein), prior
to the BCM Acquisition Signature Date, BCM had entered into a deed of sale and lease to
acquire the portion of the Goudini Farm located on the Mining Area from the Wandre Familie
Trust (the "Farm Acquisition Deed of Sale"). Contemporaneously with the NVMIH
Cancellations, the Wandre Familie Trust cancelled the Farm Acquisition Deed of Sale.
2.1.2 Meerust Chrome has entered into a lease agreement dated 5 August 2024 with the Wandre
Familie Trust for the lease of the part of Goudini Farm subject to the Mining Right for a period
of 9 years and 364 days ("the Surface Rights Lease"), which expires on 4 August 2033.
Chrome wash plant lease
2.1.3 BCM owns a chrome wash plant on Goudini Farm ("the Wash Plant") which Meerust
Chrome wishes to upgrade and operate.
2.1.4 Meerust Chrome has entered into an agreement dated 5 August 2024 with BCM to lease the
Wash Plant from Meerust Chrome for a period of 9 years and 364 days ("the Wash Plant
Lease"), which expires on 4 August 2033.
3. Operational update
Having entered into both the NVMIH Mining Right Agreement, Sale and Contractorship Agreement, Surface
Rights Lease, and the Wash Plant Lease, Meerust Chrome is now able to legally and commercially operate
under the Mining Right. Meerust Chrome now has complete operational control of the mining and
processing environment. Meerust Chrome is in the process of hiring the affected employees, to ensure that
the job creation is maintained. Operations have recommenced, with first deliveries of chrome concentrate
having already started.
4. Mantengu claim against previous BCM owners
Mantengu has protected its original investment value and thus its shareholder value has been fully restored.
In light of this fact, and to ensure the integrity of the Business Rescue process, Mantengu is investigating
its legal approach in such a manner that will not, in anyway, impede on the Business Rescue process.
5. Business Rescue Process
The Business Rescue process is being overseen by an independent and highly skilled BRP to deal with the
historical issues of BCM including undisclosed liabilities that were recently discovered. The BRP held the
first creditor meeting on 19 August 2024 and conducted a site visit to the Wash Plant on 20 August 2024.
The BRP is currently engaging all creditors and assessing their claims. Mantengu and BCM will fully support
the Business Rescue process and will assist the BRP wherever necessary.
Johannesburg
22 August 2024
Designated Adviser
Merchantec Capital
Date: 22-08-2024 09:40:00
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