Shareholders are advised that on 3 December 2019 (the “Signature Date”), Drift Supersand (Pty) Ltd. (“Drift Supersand”), a wholly-owned subsidiary of CIG (the “Purchaser”), entered into various agreements with Wearne Aggregates (Pty) Ltd., a wholly-owned subsidiary of WG Wearne Ltd. (the “Seller”) to acquire:
– the Wearne Muldersdrift Business, comprising the aggregates business conducted by the Seller (the “Sale of Business Agreement”);
– the letting enterprise conducted by the Seller, including the property (being portions Re/226, 227, 266, 267, 285, 286 and 287 of the Farm Rietfontein 189-IQ; and Portions 57, 58, 171, 182 and 185 of the Farm Rietfontein 180-IQ (the “Property”) on which the letting enterprise is conducted (“Sale of Properties Agreement”); and
– the mining right granted to the Seller (the “Mining right”) in terms of sections 22 and 23 of the mineral and Petroleum Resources Development Act, 28 of 2002 (“MPRDA”) in respect of the Property (“Sale of Mining Right Agreement”), (collectively the “Transactions”), for an aggregate consideration of R50 000 000, payable in cash in accordance with the terms of the Transactions, as further set out below.
- The value of the net assets that are the subject of the Transactions was R83.5 million as at 31 August 2019.
- The loss attributable to the net assets that are the subject of the Transactions was R1.4 million for the 6 months ended 31 August 2019.