Mantengu agrees $2 million Blue Ridge sale, exits platinum asset

Mantengu Limited, the Johannesburg-listed investment holding company, formerly known as Mantengu Mining, has agreed to sell its entire stake in Blue Ridge Platinum to Afresources Mining in a deal valued at R35 million ($2.12 million). 

The transaction marks a strategic exit from a loss-making asset and a significant step in reshaping the company’s balance sheet.

Mantengu exits Blue Ridge after sustained losses
The Johannesburg-listed company confirmed it has signed a share purchase agreement dated July 16, 2026, to dispose of its 70% shareholding and shareholder claims in Blue Ridge Platinum (Pty) Ltd. The agreement follows weeks of negotiations first disclosed in June and renewed earlier this month.

The decision comes after Mantengu funded Blue Ridge’s operations since August 2025 without generating income. The board described the situation as “no longer tenable,” prompting a broader portfolio review and eventual divestment.

$2.1 million loan, security agreements finalized
As part of the transaction structure, Afresources has advanced a R35 million ($2.12 million) loan to Mantengu at an interest rate of prime plus 1 %. The loan is expected to be settled through a set-off arrangement against the purchase consideration.

Mantengu has also pledged its Blue Ridge shares and claims as security under a cession and pledge agreement tied to the loan. In parallel, Afresources has secured a 10-year contract to operate the Blue Ridge mine, assuming all operating costs from the occupation date, pending regulatory approval.

Deal to cut liabilities by $11.2 million
The disposal is expected to materially improve Mantengu’s financial position. The company said its liabilities will drop by R185 million ($11.22 million) once the deal becomes unconditional, while monthly operating expenses will decline by about R2 million ($121,249) from August 2026.

Blue Ridge contributed R26 million ($1.58 million) to group losses in the year ended February 2026, with standalone losses of about R15.6 million ($945,745) over seven months. Had the sale been completed at the financial year-end, Mantengu estimates it would have recorded a profit of roughly R14 million ($848,745).

The company also reaffirmed its earlier stance on not recognizing a R570 million ($34.56 million) liability tied to Blue Ridge, maintaining that there was no realistic probability of such an obligation materializing.

Next steps hinge on regulatory approval
Completion of the transaction remains subject to standard conditions, including approval under Section 11 of South Africa’s Mineral and Petroleum Resources Development Act. 

This approval must be secured within 180 days of signing, although the timeline may be extended by mutual agreement. Once finalized, Mantengu will have no remaining assets or liabilities linked to Blue Ridge.

Cautionary notice withdrawn
Following the announcement, Mantengu has withdrawn its cautionary notice related to the Blue Ridge transaction, stating that shareholders no longer need to exercise caution when trading in its securities on this matter.

However, the company remains under cautionary for other ongoing transactions, including the proposed Averi Finance acquisition and the disposal of its iron beneficiation plant.

The deal is classified as a Category 2 transaction under JSE listing rules, meaning it does not require shareholder approval but remains subject to disclosure requirements.