SABLE EXPLORATION AND MINING LIMITED - Amendments to the acquisition of mining assets and renewal of cautionary announcement

Amendments to the acquisition of mining assets and renewal of cautionary announcement

Sable Exploration and Mining Limited
(previously known as Middle East Diamond Resources Limited)
 (Incorporated in the Republic of South Africa)
(Registration number: 2001/006539/06)
(Share Code: SXM ISIN Code: ZAE000303319)
(“SEAM” or “the company”)


Amendments to the acquisition of mining assets and renewal of cautionary announcement

Shareholders are referred to the SENS announcement dated 24 November 2021 regarding the
agreement entered into by SEAM and Sable Platinum Holdings (Pty) Ltd, a wholly owned
subsidiary of SEAM with Magni Investment Holdings (Pty) Ltd (“Magni”) and Lurco Metals (Pty)
Ltd (“Lurco Metals”).
The parties entered into an addendum to this agreement on 31 January 2022. The following
amendments have been agreed upon:
The following assets will now be acquired:
    •      All the issued shares of, and claims on loan account against, Vastek Trading (Pty)
           Limited (“Vastek”) from Lurco Metals. Vastek operates a Chrome beneficiation project
           in the North West Province of South Africa that procures chrome ore from the
           community owned dumps and toll treats this feed at a 50t/hour plant to produce
           chrome concentrate. In addition the prosecting rights of NW 30/5/1/1/3/2/1/12546 PR
           and NW 30/5/1/1/2/12580 PR are included; and
    •      All the issued shares of, and claims on loan account against, Lurco Eswatini (Pty) Ltd
           (“Lurco”) from Magni. Lurco holds the Prospecting Right over a high quality Anthracitic
           Coal site (previously mined by Gencor) with a discard dump for reclamation and further
           development of an open cast mine.
    for an amount of R820 000 000 (“Acquisition”).

As part of this Acquisition, SEAM will reverse list the assets through a combination of share issue,
cash and claims on loan account for an amount of R820 000 000. To the extent that any shares
are issued by SEAM as part of the purchase consideration, such purchase consideration will be
settled by the allotment and issuance of shares at R5.00 each by SEAM.

As previously announced, SEAM intends undertaking a rights offer. SEAM is in the process of
applying to the JSE to lift its suspension. Once the suspension has been lifted, SEAM will
undertake a rights offer of 50 million shares at R1 per share. Approximately R20 million will be
underwritten by various shareholders including James Allan, the CEO of SEAM. Magni will now
underwrite 20 million shares at R1 per share for a total amount of R20 million.

The financial information relating to the Acquisition will be available in due course. Accordingly,
shareholders are advised to continue to exercise caution when dealing in the company’s shares
until the financial information is released.



1 February 2022
Sandton
Sponsors
Exchange Sponsors

Date: 01-02-2022 02:08:00
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