Southstone Minerals Ltd V.SML

News

[Budlight1971]

 

Southstone Minerals sale of Kwena group

 

2020-05-25 18:42 ET - Property Agreement

 

The TSX Venture Exchange has accepted for filing the Kwena group disposition agreement dated March 20, 2020, between Southstone Minerals Ltd. and Kevin Gallagher, a non-arm's-length party to the transaction, whereby the company has agreed to sell a 49-per-cent interest in the issued and outstanding ordinary shares and a 74-per-cent interest in the issued and outstanding preference shares of each of Kwena Mining Projects Pty. Ltd., Kwena Mining and Metallurgical Services Pty. Ltd., and Kwena Springlake Projects Pty. Ltd. (the Kwena group) to Mr. Gallagher and his group for the following consideration: (a) return for cancellation of 4,077,416 common shares held by Mr. Gallagher and his group; and (b) forgiveness of outstanding indebtedness owed to the Kwena group in the aggregate sum of 14,490,121 South African rand (equivalent to $1,203,498 (Canadian)).

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[Budlight1971]

Good news have further reduced the number of shares in circulation, a little liquidity and in addition a lot of private or institutional investor did not want to invest in SML because of coal, now there will be no reason, good luck to all.

[hempster]

Plus their debt was also significantly reduced. $1.2 million that SML owed to Kwena is also forgiven (though their assets will be also reduced by this sale).