On June 19, 2024, GreenBank Capital and Ubique Minerals announced a non-binding term sheet with Clientque Investments for acquiring MJR Mining and Exploration, which owns the Stanhove gold tailings dump in Johannesburg. The acquisition, valued at CAD $3,384,341, will be split 50/50 between GreenBank and Ubique. The deal includes a cash payment of CAD $846,103, two convertible debentures of CAD $500,000 each, and an additional CAD $1,538,309 post-production of the first 5,000 ounces of gold. Regulatory approvals, technical due diligence, and other conditions are pending, with completion expected within five business days after satisfaction. Ubique will manage operations, while GreenBank will handle financing and sales.
Positive
- GreenBank and Ubique’s acquisition of MJR Mining expands their asset base with the Stanhove gold tailings dump, providing them with potential value and future growth opportunities.
- The significant investment of CAD $3,384,341 underscores the confidence both companies have in the project’s profitability.
- GreenBank’s role as the funding partner ensures financial stability and support for the venture.
- Ubique’s expertise in mining operations positions them well to effectively manage the Stanhove tailings dump.
Negative
- The completion of the acquisition is subject to various regulatory approvals and conditions, which may delay the finalization of the deal.
- The financial commitments, including an upfront payment of CAD $846,103 and additional payments based on gold production, represent a significant financial burden on GreenBank and Ubique.
- The issuance of convertible debentures with a 6% interest rate suggests a potential financial risk and leveraged position for the companies.
REYKJAVÍK, ICELAND / ACCESSWIRE / June 19, 2024 / GreenBank Capital Inc. (CSE:GBC)(OTC PINK:GRNBF)(FRA:2TL) and Ubique Minerals Limited (CSE: UBQ and FRA:2UM) have signed a non-binding term sheet with Clientque Investments Pty Ltd (“CIP”) for the acquisition of
Key Transaction Details:
Ubique Minerals Limited (“Ubique”) and GreenBank Capital Inc. (“Greenbank”) will each acquire
The non-binding term sheet was signed on June 13, 2024. The Share Sale Agreement (SSA) is to be provided within 60 days by August 12, 2024, and the signing and exchange of contracts are expected to occur within 90 days by September 11, 2024.
The completion of the transaction is subject to regulatory approvals, delivery of the deed of the land, issuance of mining permits, technical due diligence and other customary conditions. Completion is expected within five business days following the satisfaction or waiver of these conditions.
Ubique Minerals Limited will act as the operator, responsible for managing the mining and processing operations of the Stanhove tailings dump. GreenBank Capital Inc. will handle the financial aspects of the project, including funding and the sales of the extracted gold.
About the Stanhove Mining Tailings Dump
The Stanhove tailings dump is located east of Johannesburg, South Africa, within the area known locally as the East Rand gold basin and was accumulated after mining and processing gold ore from within the Witwatersrand gold mining district. The Witwatersrand basin comprises a sequence of very old, Archean, sedimentary rocks with the gold hosted in a quartz pebble conglomerate. The dominant mineral in the rock hosting the original ore is predominantly quartz with minor pyrite with which the gold is associated. Initial processing involved crushing and grinding the rock to liberate the gold by various processes, depending on the historical period, with the resulting waste being accumulated in tailings piles, of which the Stanhove pile is one. The earliest recovery processes were less efficient and therefore the waste tailings still contained significant quantities of gold. Drill sampling of the Stanhove tailings pile has identified gold values ranging upwards from <0.3g/t Au to >1.3g/t Au with increasing depth in the pile. It is typical of these old dumps for the earliest material mined to have accumulated at the bottom of the tailings pile and to have the highest grades in the basal layer. The Stanhove tailings pile of dry, ground-up rock covers an area of approximately 270 x 170 metres and reaches a maximum height of 20 metres, although most of it is less than half that height according to information provided by the vendors.
The company holds a non-compliant technical report about the project. Prior to final closing of the documentation of the agreement Greenbank and Ubique will undertake technical due diligence to verify the technical aspects of the project.
Figure 1 Aerial photo of the tailings site
Figure 2 location of the tailings site
Vilhjalmur Thor Vilhjalmsson, CEO of both GreenBank and Ubique, commented, “This acquisition represents a strategic step for both GreenBank and Ubique in expanding our mining assets and leveraging the potential of the Stanhove tailings dump. As partners, GreenBank will provide the necessary funding and handle the sales of gold, while Ubique will manage the operations, ensuring a balanced and effective approach. We are confident that this investment will yield significant returns for our shareholders.“
On behalf of the board of directors,
Vilhjalmur Thor Vilhjalmsson
CEO and Chairman
About GreenBank
GreenBank is a business-transformation firm, which aims to nurture early stage and growth companies to their full potential. Through modern approaches to the provisions of consultancy services, GreenBank takes a stake in companies it hopes to nurture and gives the opportunity to the founders and executives of those companies to benefit from the years of collective experience of the GreenBank management team.
The team are based in Reykjavík, London, and Toronto and work diligently across borders to ensure that businesses in the GreenBank portfolio reach their core objectives. The businesses the Company typically works with are start-ups or early-stage and include mining and mineral exploration companies. From this emergent state, GreenBank aims to quickly implement strong business practices by, where possible and required, deploying operations, communications, data strategy, and financial expertise.
Whether a business desires to become a successful private company, list publicly, or is seeking a profitable exit, GreenBank tries to add value at every stage as a strategic partner. GreenBank is listed on the Canadian Securities Exchange, under the symbol “GBC,” and on the OTC markets (OTCMKTS: GRNBF) as well as the Frankfurt Boerse (FRA: 2TL).
About Ubique Minerals Limited
Ubique Minerals Limited is an exploration company listed on the CSE (CSE:UBQ) and Frankfurt (FRA:2UM) focused on exploration of its Daniel’s Harbour zinc property in Newfoundland and is also engaged in exploration in Namibia, Africa along with actively searching for other projects around the world. Ubique became a publicly listed company in September 2018. Ubique has an experienced management group with a record of multiple discoveries of deposits worldwide and owns an extensive and exclusive database of historic exploration results from the Daniel’s Harbour area.
Dr. Gerald Harper, P.Geo.(NL), director of Ubique, is the qualified person as defined by NI 43-101 responsible for the technical data presented herein and has reviewed and approved this release.
For more information on GreenBank or Ubique please contact vilhjalmur@jvcapital.co.uk
Forward Looking Information
This news release contains statements that include “forward-looking information” as defined in applicable Canadian securities laws, including, but not limited to, statements with respect to the proposed private placement and debt conversion, and GreenBank’s investment strategy. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of GreenBank to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could affect the outcome include, among others: inability to find subscribers for the private placement, challenges in identifying and concluding investment transactions with attractive companies on favorable terms, or at all, future prices and the supply of metals, the results of drilling, inability to raise the money necessary to conclude investment transactions with third-party companies or to incur the expenditures required to retain and advance the Suni project, environmental liabilities (known and unknown), general business, economic, competitive, political, and social uncertainties, accidents, labor disputes, and other risks inherent in business, such as political instability, terrorism, insurrection, or war, delays in obtaining governmental approvals, or failure to obtain regulatory approvals. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to GreenBank’s filings with Canadian securities regulators available on SEDAR+ at www.sedarplus.ca.
Although GreenBank has attempted to identify important factors that could cause actual actions, events, or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events, or results to differ from those anticipated, estimated, or intended. Forward-looking statements contained herein are made as of the date of this news release, and GreenBank disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, or otherwise, except as required by applicable securities laws.
SOURCE: GreenBank Capital Inc.
View the original press release on accesswire.com
FAQ
What is the date of the GreenBank and Ubique deal for MJR Mining?
The non-binding term sheet was signed on June 13, 2024, and announced on June 19, 2024.
How much is the GreenBank and Ubique acquisition of MJR Mining worth?
The total transaction value is CAD $3,384,341.
What are the financial commitments in the GreenBank and Ubique deal for MJR Mining?
The deal includes an initial cash payment of CAD $846,103, two CAD $500,000 convertible debentures, and an additional CAD $1,538,309 after the first 5,000 ounces of gold production.
When is the completion of the GreenBank and Ubique acquisition of MJR Mining expected?
The completion is expected within five business days following the satisfaction or waiver of regulatory approvals and other conditions.
Who will manage the operations of the Stanhove gold tailings dump?
Ubique Minerals will manage the operations, while GreenBank will handle financial aspects and sales.
Insight:
– The strategic acquisition of MJR Mining by GreenBank and Ubique signals their intent to expand their mining assets and capitalize on the potential of the Stanhove tailings dump. This move aligns with their growth strategies and could lead to lucrative returns for their shareholders.
– GreenBank’s focus on financing and sales complements Ubique’s operational expertise, creating a collaborative and balanced approach to managing the project’s operations effectively. This partnership model could enhance the overall success of the venture.
