Sable Mining Africa Regulatory News (SBLM)

Sable Mining Africa Ltd / Index: AIM / Epic: SBLM / Sector: Natural Resources

28 March 2012

Sable Mining Africa Limited ('Sable Mining' or 'the Company')

Update on DMC

Sable Mining Africa Limited, the AIM listed resource company, provides an update on its investment into South African-based exploration and mining company, Delta Mining Consolidated Ltd ('DMC').

As announced on 5 October 2011 the Company acquired a 27.5% stake in DMC from Rannerdale Limited, a wholly owned subsidiary of London Mining plc, with the result that Sable Mining (together with a wholly owned subsidiary company) holds an aggregate 63.5% interest in DMC. 

Sable Mining now announces that as a result of the non-satisfaction of certain conditions precedent and the termination of subsequent negotiations, the Company will not at the present time acquire the remaining 36.5% stake in DMC from the Avalon Trust and Mikakor CC as contemplated in the announcement of 1 April 2010, but will remain as a 63.5% shareholder in DMC.

The Company remains focussed on the advancement of its portfolio of assets in West Africa and Central/Southern Africa, focussing primarily on iron ore and coal. In order to maximise the value of this portfolio, the Board is continuing to evaluate the potential to split the assets into two companies: one focussing on iron ore in West Africa, which includes potentially world class exploration projects with multi-billion tonne potential primarily in Guinea and Liberia; and the other, coal in South Africa and Zimbabwe where the Company has significant attributable resources. The Board believes that these two major commodities often attract varied investment interest, and it is anticipated that by splitting the assets there is the potential to provide increased visibility for both asset classes. Further information regarding potentially splitting the assets will be provided in due course.

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