Sale of stake in Letseng Diamond Mine to cut JCI's liabilities
The sale of JCI's stake in the Letseng diamond mine in Lesotho will reduce JCI's net liabilities by about 21%, according to a circular sent out ahead of the shareholders' meeting to vote on the transaction. It will also provide JCI's main financier, Investec, with a R38m share of the profits on the sale.
Shareholders met on September 29 to vote on the disposal of JCI's stake in the mine and approved the terms of Investec's financial assistance to JCI. Investec lent R460m to a special purpose vehicle last year to help JCI meet its commitments.
In the circular, JCI said its current strategy was to dispose of some of its investments to repay its liabilities. JCI's total liabilities amount to R397m in loan facilities from Investec, R1,1bn in claims from Randgold & Exploration, and R255m claimed by the South African.