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Trans Hex to Liquidate Struggling Mining Unit
Oct 23, 2019 10:46 AM
By Rapaport News
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RAPAPORT... South Africa-based diamond miner Trans Hex has been forced
to liquidate its failing West Coast Resources (WCR) subsidiary after a
potential sale of the business fell through.
Takeover negotiations with Kernel Resources have terminated,
leaving Trans Hex unable to run the unit, the miner reported last week. As a
result, “WCR is not in a position to meet its working capital requirements
without the necessary funding being made available,” Trans Hex said.
WCR, which operates the Namaqualand mine, has struggled in
the weak market, with rough prices declining 27% in recent months, and mining grades
falling to unexpectedly low levels, Trans Hex explained.
Kernel began negotiations with Trans Hex in May with a view
to buying 70% of Namaqualand, which is located close to the west coast of South
Africa. Kernel also bought Trans Hex’s Lower Orange River operations in April
2018.
The liquidation is the latest in a string of difficulties
for Trans Hex. Llewellyn Delport, the company’s CEO since 2004, stepped down in
August following continued operating losses that also forced the miner to issue
a warning about its ability to stay in business.
Image: The Namaqualand mine. (West Coast Resources)
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Tags:
Kernel Resources, Llewellyn Delport, Lower Orange River, Namaqualand, Rapaport News, Trans Hex, WCR, West Coast Resources
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