Obtala Resources to sell 100m Bushveld shares

Obtala Resources, a natural resource investment and development company, has agreed to sell 100m of its shares in Bushveld Minerals to Endulwini Mining Corp at 13p each.

The £13m sale is expected to be completed within 45 days once certain conditions have been met, including Endulwini receiving exchange control approval and final approval from its funding partner.

Obtala will retain 30.52m shares in Bushveld, equal to 10.75% of the issued share capital.

The proceeds will be escrowed with part of the funds used to grow and develop the agriculture projects in East Africa which is the main strategy of Obtala.

Bushveld generated an operating loss of £1.55m for the half year ended August 31st 2012.

Obtala's share price rose 3.23% to 8.00p by 08:22 Wednesday.

NR