London Mining sells its shares in DMC

UK-based miner London Mining plc has accepted an offer of $24.8 million in cash from another UK-based miner Sable Mining Africa, whose focus is on mining assets in sub-Saharan Africa, in respect of London Mining's 27.5 percent interest in Delta Mining Consolidated (DMC). The latter company holds substantial shareholdings in several early stage coal and iron ore assets in southern Africa.
 
London Mining is also due to receive $15.2 million of Sable shares due to a private agreement signed on January 19, 2010 that guaranteed that London Mining will receive total proceeds of $40 million in the event of the sale of DMC. Sable currently owns approximately 36 percent of DMC.
 
The offer is subject only to regulatory approvals relating to the change of control in DMC and anti-trust matters.
 
Graeme Hossie, CEO of London Mining, said, "The decision to monetize the non-core investment in DMC allows London Mining to focus its management time and balance sheet on the assets it operates."