LONDON: Capital Limited (LSE: CAPD), a leading mining services company, announced the sale of its entire shareholding in Predictive Discovery Limited to Perseus Mining Limited for total cash consideration of A$47.3 million (US$31.2 million) today.
The agreement with Perseus includes a profit share arrangement whereby Capital and Perseus have agreed to share (on a 50/50 basis) the profit, if any, derived by Perseus from a subsequent sale by Perseus of the Sale Shares to any third party that occurs on or prior to 31 December 2025.
Capital has decided to dispose of the Sale Shares in order to recycle funds back into its broader business, predominantly applying the proceeds of the sale in reducing Capital’s debt levels.
Jamie Boyton, Capital’s Executive Chairman, has recused himself from all transaction negotiations and voting as part of Capital’s independently chaired Investment Committee and voting as part of the Board of Capital. In a separate transaction, Jamie Boyton has accepted the same terms as negotiated by Capital and sold his personal PDI holdings to Perseus.
Commenting on the sale, Peter Stokes, Chief Executive Officer, said: ‘Predictive Discovery has been an excellent investment for Capital, as well as an excellent client for Capital’s drilling business. As Predictive moves towards permitting and then construction, we see this as the right time to recycle this investment back into the broader business, particularly to lower the Group’s debt levels.’