Tuesday, 29 March 2011 15:01Tom Brennan
AUSTRALIAN conglomerate Transol Corp has said it would sell Liberty Mining Group, which operates four sites in Cambodia, and its controlled subsidiaries to “non-related Canadian private interests” in a cash and stock deal.
Liberty Mining, also an Australian company, operates a joint mining venture with Canada-based Prairie Pacific Mining at four projects in Cambodia’s Ratanakkiri province.
Transol, which operates digital music, computer and Web businesses, stated it will receive US$600,000 for the sale of Liberty, plus 600,000 Class “A” shares in an entity intending to list on the Toronto Stock Exchange.
The value of those shares is still under negotiation as part of the listing process on the TSX.
Transol will also earn a 2.5-percent net smelter royalty for Liberty and Prairie Pacific’s four Cambodian projects in around Ban Lung and O Yadav districts, to a maximum aggregate payment of $800,000, according to a statement released Friday.
Maxum Metals, another wholly-owned subsidiary of Transol, will be transferred to Liberty Group.
The deal also means Transol will not push forward with its plans to give Liberty seed capital funding or Liberty’s anticipated listing on the Australian Stock Exchange, a move that was announced in December.
As a result of the deal, Transol said it would also not proceed with the planned purchase of two Cambodian projects owned by Summer Gold.
Summer Gold has agreed to repay Transol the initial cost of the acquisition, which was $350,000. “It is intended that the purchasing entity will complete due diligence within four weeks being on or around 23 April 2011 and, subject to a positive outcome, shareholder approval will be sought late May/ June with settlement occurring two days thereafter,” the statement said.
Richard Stanger, managing director of Liberty Mining in Cambodia, could not be reached for comment yesterday.
John Paul Dau, country director for Prairie Pacific Mining, would not comment on the transaction when approached for comment yesterday.