Earlier this month, Mantengu Mining Limited, a newly listed resource investment company, announced that it has secured a R500-million equity facility with a global alternative investment fund, GEM Global Yield LLC SCS (GEM). GEM is a USD3.4-billion alternative investment group with operations in Paris, New York and the Bahamas.
The equity facility will bolster the company’s growing investment capability and provides Mantengu with significant flexibility with which to aggressively expand its operations and pursue new opportunities in the mining, mining services and energy sectors.
The transaction breaks the current cycle where the JSE is experiencing significantly higher net outflows of foreign capital. The company notes that increase in outflows of foreign capital compounds South Africa’s liquidity crisis, where companies outside of the JSE Top 40 battle to secure meaningful capital. This situation highlights the decrease in foreign appetite for SA equity investments.
The liquidity crisis is amplified for companies trying to operate in the small to large mining space, which is clearly seen by the numbers of companies in business rescue or liquidation. Having secured this investment – defying the current trend – Mantengu management team notes the significant support from the new investor and current shareholders. The company has identified notable value in this sector, and with access to flexible equity and debt, is looking to aggressively grow its portfolio.
Mantengu Group CEO Mike Miller says, “The flexibility of the R500-million equity facility provides the company with both debt and equity levers with which to identify, structure and optimise investments in our focused sectors. Mantengu is likely to disrupt the focused sectors through the deployment of its innovative funding and progressive empowerment models in a sector that is craving financial support. The company’s access to funding and inherent entrepreneurial spirit provides a solid platform to become a next generation investment company. It heralds another significant milestone in the company’s redemption story.
“We are hugely excited about this new partnership and look forward to working with our new shareholders to execute on our vision and investment strategy.”
The company is committed to investing in high-value mining, mining services and energy opportunities. With this new equity investment, the company will be able to continue its growth and expansion in the mining sector. As part of its ongoing commitment to strategic expansion, Mantengu is actively exploring the market to identify suitable investment opportunities that align with its mining, mining services and energy investment strategy.
Source: Supplied by Montegu Group, edited by Sharyn Macnamara