Giyani Metals Corp. said Sept. 19 that the company is exiting from gold exploration in South Africa by selling its 45% stake in Rock Island Trading 17 (Pty) Ltd. to Corridor Mining Resources (Pty) Ltd. for a total cash consideration of 9.6 million South African rand, or about US$868,000.
Corridor will acquire the stake from Giyani by paying one-third of the aggregate cash consideration within two business days, with the balance to be paid following satisfaction of certain regulatory conditions, which includes the receipt of ministerial consent to the sale required under South African law.
The closing of the deal is expected in the first quarter of 2020.
Giyani said that the sale will allow the company to focus on developing a battery grade manganese project to serve the global electric vehicle market.
In August, the company said that a preliminary economic assessment on its K.Hill manganese project in Botswana delivered a posttax net present value, discounted at 10%, of US$285 million, with a 90.6% internal rate of return and a 1.5-year payback period.
