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GSEP acquires 99.43% interest in Casa Mining

Africa Global Funds
April 2, 2020, 1:47 p.m.
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Golden Square Equity Partners (GSEP), a privately held UK Company, has acquired a 99.43% interest in Casa Mining from Arc Minerals for up to $50m. 

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Golden Square Equity Partners (GSEP), a privately held UK Company, has acquired a 99.43% interest in Casa Mining from Arc Minerals for up to $50m. 

In addition, Golden Square Equity Partners has a binding obligation to enter into a royalty payment agreement with Arc Minerals of up to $45m within 20 business days of the transaction closing on March 19, 2020, based on potential gold production of the projects and interests that are held by Casa.

Golden Square Equity Partners also assumed all existing liabilities pertaining to Casa (£1.95m as at September 30, 2019), capped at $3m. 

Nick von Schirnding, chairman of Arc, said: "This transaction is a major step forward for Arc.  Following the disposal of our interests in Slovakia and Eritrea, the sale of Casa turns Arc into a pure play copper company with our exciting Zambian copper development where we intend to recommence our drilling programme in Q2 of this year.” 

“Given the extremely challenging market conditions we are experiencing with Covid-19 this transaction is attractive to Arc with a potential $5m cash payment upon the maturity of the loan note in March 2021 and a potential  royalty of up to $45m going forward, allowing us to share some of the future upside at Casa.

Casa is a private company which owns a 73.84% interest in the 3-million-ounce inferred Resource Akyanga gold deposit in the DRC.

As at September 30, 2019, the reported net book value of Arc's interest in Casa Mining and its subsidiary, which own the Misisi gold assets was £4.7m. 

The cost to Arc of the shares being sold is £5.7 ($6.9m) against the gross consideration of up to $50m.

Valuation of future consideration which directly impacts the profit on disposal of Casa is under consideration.  

As at September 30, 2019, the loss attributable to Casa was £6,250.

The net proceeds of the disposal will be applied to exploration and development activities in Zambia and for general working capital purposes.

Jonathan de Thierry, an Arc non-executive director and one of the founders of Casa, has informed the board that he intends to resign from the Arc board on March 31 2020, following the disposal of Casa. 

GSEP considers investment into local and global commercial opportunities and enterprises within an extremely wide array of sectors, environments, global geographics and demographics requiring the infusion of strategic commercial solutions designed to free up business constraints brought about by either under-investment, lacking resources or simply limitations of incumbent management needing vital support and guidance.  

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