Trans Hex Shares Drop on Namaqualand Announcement

(IDEX Online News) – Shares in South African miner Trans Hex fell by more than 5 percent on the Johannesburg Stock Exchange after the firm said that the acquisition of the Namaqualand mines from De Beers had still not been finalized.

The original agreement was made in May 2011 and then renegotiated in August 2012. Trans Hex is buying Namaqualand Mines through 50-percent owned Emerald Panther Investments.

Trans Hex said the one remaining issue was agreement between De Beers and the government over the state’s 20-percent interest in Namaqualand mines.

The revised deal reduced the purchase price for and left De Beers responsible for rehabilitation issues on certain mines.

These mines may eventually be sold to Trans Hex after four years under an option agreement depending on the status of the rehabilitation work carried out.

Trans Hex said last August it expected the deal to be finalized "within six to 12 months".

De Beers' Namaqualand unit produced 97,000 carats in 2010 – its last operating year before being closed down.