The acquisition of the Otjosondu manganese mine in central Namibia continues to face delays.
Last August, Banner Mining (VSE) agreed to buy all the issued capital of the mine’s owner, Purity Manganese, for 2.5 million common shares.
Independent project valuation work revealed that further data are required to state proven and probable manganese reserves.
The deal has been further complicated by a considerable drop in Banner’s share price. The issue recently traded at 16 cents, down from the $1 level in August, 1995.
Purity and Banner will now seek to structure a new transaction.
Adding further to the uncertainty surrounding the acquisition, Roger Ballen, James Carr and Andrew Malim (president, chief operating officer and chairman, respectively, of Banner) have all resigned.
Malim, who will remain as a director, has made certain allegations about financial mismanagement connected to Banner’s administration, as well as disclosure problems associated with Purity.
The other directors of Banner are certain that an audit will show there has been no financial mismanagement and that the allegations against Purity are unfounded.
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