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Trustco ups ante on diamond search

Trustco ups ante on diamond search

JSE listed Trustco Group Holdings is adding more dynamism to its group structure which will see it incorporate a new subsidiary, Huso Investments into the stable. Huso, notably, recently signed an agreement with an undisclosed Sierre Leone miner.

Releasing a cautionary last week, Trustco said, “On 5 October 2015 shareholders were notified on SENS that shareholder approval was provided in terms of the Huso Transaction and given details as to the outstanding conditions to be fulfilled for purposes of closing the Huso Transaction. While the Huso Transaction has not yet closed, the Company (Trustco) wishes to advise shareholders that Huso has entered into advanced negotiations with a target company in Sierra Leone (“Target Co”) relating to a potential partnership for a geo-economic evaluation, development and exploration of a diamond exploration license as secured by the Target Co in June 2015.

Added Trustco, “should Huso and the Target Co be satisfied with the outcome of an independent due diligence review, they will use their best endeavours to negotiate and agree to a definitive agreement.
“The outcome of the independent due diligence is expected within 15 business days. Should the Huso Transaction close and if the partnership is successfully concluded it could have an impact on the Company’s securities. In the circumstances, shareholders are advised to exercise caution when trading in their Trustco shares until a further announcement is made. Furthermore, shareholders will be notified once the unfulfilled conditions of the Huso Transaction have been fulfilled and the Huso Transaction has been finalised.”

The Economist had published a story last week on the transaction, much to the ire of Trustco Group. Taking the Economist to task, its spokesperson, Neville Basson said in a statement addressed to the Economist, “There’s also no outstanding issue including shareholder approval, this has been done accordingly too. Connecting our good name to this entity or non-entity if you may, could have serious repercussions to our brand and shareholders.”

Trustco further requested that the Economist rectify the alleged connection to mining operations in Toscanini in the Erongo Region. The Economist thus, proceeded to indicate that Trustco has no operations in Toscanini but that it is the owner of an exploratory licence 2633, situated near the Kunene River mouth,

The article has since been corrected.


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The Staff Reporter

The staff reporter is the most senior in-house Economist reporter. This designation is frequently used by the editor for articles submitted by third parties, especially businesses, but which had to be rewritten completely. - Ed.