Mvelaphanda Resources to close down

MVELAPHANDA Resources has abandoned any acquisition hopes with outsiders and is set on the final unbundling and sale of assets - flattening the pyramid - to be followed within a few months by the company's closure.

MVELAPHANDA Resources has abandoned any acquisition hopes with outsiders and is set on the final unbundling and sale of assets - flattening the pyramid - to be followed within a few months by the company's closure.

Mvela, founded by Tokyo Sexwale, is to sell its shareholding in Gold Fields, which will allow it to repay the remaining R3,1billion loan raised to acquire that stake, leaving it with between R1billion and R1,5billion in cash.

That will be enough to follow any possible rights issue by platinum miner Northam in September on the completion of a feasibility study that gives Northam the green light to proceed with the Booysendal project that it had initially acquired from Mvela.

Once this is out of the way, the idea is to distribute the Northam shareholding and any surplus cash to Mvela's own shareholders, including 42percent shareholders Mvelaphanda Holdings and Afripalm.

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