After receiving the approval of its shareholders and the Toronto Stock Exchange, Namibian Minerals (Namco) (NMR-T) has closed a deal with the Leviev Group of Israel, who will subscribe to 37.7 million Namco shares, generating US$15 million for the stricken marine diamond miner.
Under the deal, Leviev will become Namco’s sole marketing agent and, with a 39% interest, its largest shareholder.
On closing, Namco discharged three of its Namibian subsidiary companies which had been placed in provisional liquidation. Namco has come to agreements on, or is in the process of settling, all claims by creditors of the companies.
In late February, Namco was forced to place several subsidiaries into provisional liquidation, resulting in a halt in production. An earlier accident involving the NamSSol, followed by a year of unexpectedly low production, left the company unable to repay its debts.
Recently, the Ya Toivo, which supports the Nam2 mining system, resumed operations in Mining Licence 51. It is expected to provide the bulk of Namco’s production for 2001. The seabed crawler can mine 1.5 million cubic metres of material annually, or twice as much as NamSSol. Namco says the commissioning of the Nam2 and Ya Toivo is more than half complete. The company has lodged a US$5-million guarantee to secure MV Ya Toivo.
Namco previously arranged deals with its bankers and a group of South African creditors for a moratorium on the company’s debt repayment until later in the year.
Namco plans to return its remaining vessels to production in stages throughout the year. Exploration in areas with thin sediment cover from MV Zacharias is expected to gear up before the end of the month. Re-commissioning of the Wirth exploration drill is planned for later in the year.
“We are making progress in taking the company forward. We do not underestimate the challenges but are committed to rebuilding value for our stakeholders,” said Alastair Holberton, Namco’s CEO, in a prepared statement.
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