Namibia: Trustco in Talks for N$1.4 Billion From Private Equity Fund

21 October 2020

Trustco Group Holdings on Monday confirmed it is in negotiations with an international private equity fund for a debt facility of US$50 million (N$822 million) and an export credit facility to the amount of US$35.8 million (N$590 million). A statement from the Trustco Group noted the negotiations are connected to the development and expansion of the Trustco Resources Segment, with the emphasis on Meya Mining, which is the group's diamond mining asset in Sierra Leone.

"The term sheets contain warranties and due diligence processes, which are standard for transactions of this nature. Should the parties and their boards be satisfied with the outcome of the due diligence review, definitive agreements will be concluded," read the statement from Trustco spokesperson Neville Basson.

According to the statement, the combined facilities will ensure Meya Mining's initial mine configuration, targeting 360 000 carats per annum, is fully capitalised, thus enabling the mine to transition into commercial production within 18 months post-funding.

"For the first seven years, Meya Mining's mine plan will be focused on the depletion of the Meya River domain, from where the Meya Prosperity was unearthed, as it presents the highest geo-economical potential, based on the exploration results to date," the statement added.

Meanwhile, Jan Joubert, Group Head of Trustco Resources, said: "This is the next step in the development of Meya Mining, the world-class diamond asset of Trustco and Germinate of Sierra Leone. Once these transactions are concluded the Trustco Resources segment will soon stand toe-to-toe with Trustco Financial Services in producing value for our shareholders across the globe".

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