Mvelaphanda Resources confirmed today (4th June) that it will de-list in the first quarter of 2010 and sell part of its majority stake in Northam Platinum.

The firm, which was set up by black politician Tokyo Sexwale, was hoping to become a major player on the South African mining landscape through a holding company.

However, Johannesburg Stock Exchange (JSE) rules required it to emerge as an operator in its own right by buying a mining asset or to de-list, and the latter option has now been taken.

Lazarus Zim, Chairman of Mvela - which currently holds a 63 per cent stake in Northam - denied suggestions that its black economic empowerment will suffer as a result of the move.

He told Reuters: "Mvela will end up with a direct shareholding of 27 per cent in Northam. This is a significant shareholding in an important player in platinum mining in South Africa.

"There are not many companies listed on the JSE that have such a high level of black ownership."

Mvela contravenes JSE rules because it gains the majority of its earnings through its interest in Northam and has more than three-quarters of its net asset value tied up in the company.

"Unbundling of Mvela makes sense because it gives shareholders direct access to Northam," said Simon Hudson-Peacock, an analyst at Cadiz African Harvest Asset Management, in an interview with the news provider.

Mr Zim also noted that Mvela will be cash-positive after the spin-off and will therefore be able to continue heavy investment in Northam's interest in the Booysendal platinum project.

A feasibility study for the site - which is believed to contain over 100 million ounces of pgms in low-cost, shallow deposits - is scheduled to take place in September.

In addition, Mvela revealed that Chief Executive Officer Pine Pienaar has resigned, although he will be involved in the consultation process for the Northam share sale.

Source:

UPDATE 2-S.Africa's Mvela sets in motion process to de-list (04/06/09)

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