Stonewall Resources (ASX: SWJ) should trade higher after it received Ministerial Consent from the South African Government to transfer shares it holds in Stonewall Mining to Shandong Qixing Iron Tower Co.
SWJ and minority shareholders are to receive US$141.55 million all cash consideration on successful completion, with Stonewall’s share being US$124.39 million.
This represents around $0.27 per Stonewall share on a fully diluted basis; Stonewall shares last traded at $0.20.
Proceeds are intended to be distributed to Stonewall shareholders after adjustments for repayment of debt, tax, costs and an amount sufficient to maintain Stonewall while it pursues other business opportunities.
The receipt of Ministerial Consent satisfies a key condition precedent of the Share Sale Agreement with Shandong, leaving Chinese regulatory approvals as the final hurdle.
SWJ is a gold mining company that holds a range of prospective gold assets in South African gold mining regions.
SWJ's three key projects are the TGME Project, the Bosveld Project, and the Lucky Draw Project, located in Australia, near the township of Burraga in New South Wales.
Beyond its current strategies, SWJ has access to nearly 40 historical mines and prospect areas that can be accessed and explored.
Shandong Qixing Iron Tower Co is part of the Qixing Group Company, a privately owned large-scale diversified industrial company with revenue exceeding US$2.3 billion in 2012.
SWJ is currently capitalised at $97 million.
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