Logo of Phnom Penh Post newspaper Phnom Penh Post - Liberty Mining sale planned

Liberty Mining sale planned

Liberty Mining sale planned

AUSTRALIAN conglomerate Transol Corp has said it would sell Liberty Mining Group, which operates four sites in Cambodia, and its controlled subsidiaries to “non-related Canadian private interests” in a cash and stock deal.

Liberty Mining, also an Australian company, operates a joint mining venture with Canada-based Prairie Pacific Mining at four projects in Cambodia’s Ratanakkiri province.

Transol, which operates digital music, computer and Web businesses, stated it will receive US$600,000 for the sale of Liberty, plus 600,000 Class “A” shares in an entity intending to list on the Toronto Stock Exchange.

The value of those shares is still under negotiation as part of the listing process on the TSX.

Transol will also earn a 2.5-percent net smelter royalty for Liberty and Prairie Pacific’s four Cambodian projects in around Ban Lung and O Yadav districts, to a maximum aggregate payment of $800,000, according to a statement released Friday.

Maxum Metals, another wholly-owned subsidiary of Transol, will be transferred to Liberty Group.

The deal also means Transol will not push forward with its plans to give Liberty seed capital funding or Liberty’s anticipated listing on the Australian Stock Exchange, a move that was announced in December.

As a result of the deal, Transol said it would also not proceed with the planned purchase of two Cambodian projects owned by Summer Gold.

Summer Gold has agreed to repay Transol the initial cost of the acquisition, which was $350,000.  “It is intended that the purchasing entity will complete due diligence within four weeks being on or around 23 April 2011 and, subject to a positive outcome, shareholder approval will be sought late May/ June with settlement occurring two days thereafter,” the statement said.

Richard Stanger, managing director of Liberty Mining in Cambodia, could not be reached for comment yesterday.

John Paul Dau, country director for Prairie Pacific Mining, would not comment on the transaction when approached for comment yesterday.

MOST VIEWED

  • Rainsy stopped in Paris from boarding Thai flight

    Airline officials at Paris’ Charles de Gaulle airport on Thursday prevented Sam Rainsy from boarding his flight to Bangkok ahead of his announced return to Cambodia on Saturday. Prime Minister Hun Sen had earlier in the day assured Phnom Penh residents that there would be

  • Analyst: Rainsy blocked from boarding flight 'an excuse'

    THAI Airways not allowing Sam Rainsy on its route from Paris to Bangkok on Thursday is being used as an excuse to keep his standing among fellow coup plotters and his uninformed supporters as flights to non-Asean countries are available, an analyst said on Friday.

  • Rainsy lands in Malaysia

    Cambodian opposition figure Sam Rainsy arrived in Kuala Lumpur airport on Saturday afternoon after boarding a flight from Paris, where he has been living for more than four years. Ministry of Foreign Affairs and International Cooperation spokesperson Koy Kuong said on Saturday that Cambodia respected

  • Touch: Rainsy will never return

    Sam Rainsy, the “acting president” of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), has claimed it has achieved 70 per cent of its struggle to find a solution to the current political situation in the Kingdom. Just before boarding a plane at Charles de Gaulle

  • Sokha continues call for dropping of charge after bail conditions reduced

    Not satisfied with having his bail conditions reduced, allowing him to travel freely in Cambodia, Kem Sokha says he wants his charge totally dropped. “As an innocent man who has been in detention for two years even without being found guilty, I continue to demand

  • Prayut indicates no entry into Thailand for CNRP’s Rainsy

    Cambodian government officials on Wednesday welcomed the position of Thai Prime Minister Prayut Chan-o-cha after he indicated that Sam Rainsy would not be allowed to return to Cambodia through Thailand. “According to our commitment to Asean, we will not interfere in each other’s internal