Trustco rebalances Meya exposure, ramps up underground production
After investing approximately US$116 million in its Meya diamond mine in Sierra Leone, Trustco Group announced this week that is has found an investor for 70% of the mine’s equity, but at a firesale price of US$25 million.
For a sweetener, the prospective investor, Sterling Global Trading will add US$25 million as a loan with another US$25 million lined up from third party investors.
Trustco said this US$75 million injection will fully fund the mine’s accellerated production ramp-up while recycling a fraction of its capital investment.
Trustco will retain a 19.5% stake in Meya with local investor Germinate SL, holding 10.5%.
Group Deputy Chief Executive, Quinton van Rooyen junior said “…. it is deeply gratifying to see this project come full circle and deliver significant value. We are proud to partner with a globally respected player like Sterling possessing unrivalled expertise in diamond mining. With their assistance, Meya is poised to scale its world-class underground operations exponentially as we pursue increased production. Since inception as a concept in 2016, Meya has developed into a thriving enterprise supplying over 400 jobs and uplifting local communities. This transaction represents a major milestone, allowing Trustco shareholders to realize significant value from the early-stage investment and ensures that Trustco is well positioned to provide exceptional returns to investors for years to come.”
The Meya mine is located in a mining licence covering 129 square kilometres with indicated reserves based on initial exploration of some 7 million carats. With the new investor on board, the mine will grow capacity, commission a state-of-the-art NIR waste sorter and accellerate underground development.
Meya has delivered its first underground production earlier this month.
