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TSX - Trans Hex Group Limited - Namaqualand communities to acquire stake in

Release Date: 10/08/2011 09:48
Code(s): TSX
Wrap Text

TSX - Trans Hex Group Limited - Namaqualand communities to acquire stake in Namaqualand Mines TRANS HEX GROUP LIMITED (Incorporated in the Republic of South Africa) Registration number 1963/007579/06 ISIN: ZAE000018552 Share code: TSX NAMAQUALAND COMMUNITIES TO ACQUIRE STAKE IN NAMAQUALAND MINES Cape Town, 10 August 2011: Trans Hex Group (JSE: TSX) ("Trans Hex") is pleased to announce that the Namaqualand Diamond Fund Trust ("NDFT") has acquired a 5% shareholding in Trans Hex`s 50%-held associate company, Emerald Panther Investments (Proprietary) Limited ("EPI"). This follows the statement on 6 May 2011 in which Trans Hex announced that EPI had signed an agreement to acquire Namaqualand Mines ("NM"), a division of De Beers Consolidated Mines Limited ("the proposed NM transaction"). The proposed NM transaction is subject to the fulfillment of a number of conditions precedent, including approval by shareholders of Trans Hex, the relevant competition authorities and other necessary regulatory bodies. EPI is now beneficially owned by Trans Hex (50%), together with JSE-listed investment company RECM and Calibre Limited (34%), Dinoka Investment Holdings (Proprietary) Limited (11%) and the NDFT (5%). Certain aspects relating to the shareholding of EPI have not yet been finalised and the shareholding structure is therefore subject to change. The NDFT was founded in 1994 with the primary aim of improving the quality of life of all the inhabitants of Namaqualand, and specifically those living in the rural areas, and was financed by royalties generated from diamond mining in the region. The Trust focuses on social and welfare programmes, educational support, infrastructure development, community services and small business development. The trustees of the NDFT include representatives of seven rural districts in Namaqualand (Buffelsrivier, Komaggas, Steinkopf, Pella, Richtersveld, Concordia and Leliefontein) as well as representatives of the Northern Cape provincial government. Chief Executive Officer of Trans Hex, Llewellyn Delport, said: "We are pleased that the NDFT has decided to participate in the next phase of the life of Namaqualand Mines, as we see the Trust as an obvious and natural shareholder in EPI. Empowering the Namaqualand communities through a direct equity stake in Namaqualand Mines is an ideal way to continue and accelerate the good work that has been carried out by the NDFT over many years". The NDFT will be entitled to appoint a director on the board of EPI and will contribute funding for the proposed NM transaction pro rata according to its shareholding in EPI. Speaking on behalf of the NDFT, Chief Executive Officer, Margaret Williams commented: "The NDFT has played a major role in improving the quality of life in Namaqualand communities over many years through our educational and charity funds. However, this is the first time that we will be involved as shareholders in one of the mines in the area and that is a significant development for us. All our communities, via their representatives on the board of Trustees fully support the proposed NM transaction and see this as a strong platform from which to continue to serve the people of Namaqualand". Cape Town 10 August 2011 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 10/08/2011 09:48:00 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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