(MENAFN - ProactiveInvestors - Australia) Mintails Limited (ASX: MLI) has completed the purchase of Dikgosi Gold's shares in Mintails' South African subsidiaries, giving it 100% of the operating companies for ZAR 4,700,000 (A500,000).
The company is currently in discussions with potential parties that could bring material value the group.
Mintails added that while it is working towards agreements with potential partners, it would restructure to simplify its organisational structure that better aligns its strategic direction and expected empowerment participation.
Under South African regulation, at least 26% of a projects equity has to be held by and to the benefit of Historically Disadvantaged South Africans (HDSAs).
This stake is purchased by the local partners, who then participate pari passu with Mintails and provide representation to the board at the empowered level.
In accordance with the principles of Broad Based Black Economic Empowerment (BBBEE), a portion of the equity stake will be placed in trust for the benefit of the local community and for employees and their families.