The cash deal gives the AIM-listed investment company access to four major coal interests in South Africa and Botswana.
“This deal to acquire a 29.33 per cent stake in Delta Mining Consolidated represents our first transaction aimed at building Sable into a major mining company focused in southern Africa,” said Andrew Goves, Sable Mining chief executive officer. “Delta Mining Consolidated has a well defined coal portfolio which we believe we can actively assist in its development, through the application of our combined experience covering a range of natural resource development companies in sub-Saharan Africa.”
Edmonds and Groves sold their previous business, Central African Mining and Exploration Company, for £584m to Eurasian Natural Resources in 2009. The pair set up Sable, formerly Bioenergy Africa, as an investment company to pursue coal and uranium projects in sub-Saharan Africa.
PHIL Edmonds is a director of a number of public and private companies and has considerable experience in introducing and building AIM-listed companies.
These include African Platinum which was sold to Impala for £550m, CAMEC sold to Eurasian Natural Resources for around £600m, Agriterra, a maize processing and cattle ranching company, and African Medical Investments, which focuses on the provision of quality private healthcare across Africa.
Born in Lusaka, Zambia, Edmonds holds an honours degree in land economy from Cambridge University and played cricket for England and Middlesex from 1974 to 1987.
Sable shares have soared from 2.25p to 20.5p, valuing the company at £129m.