JSE-listed Mantengu has signed a R35-million agreement to sell its 70% stake in Blue Ridge Platinum to Afresources Mining, withdrawing a cautionary announcement it first issued in June.

The share purchase agreement, dated July 16, 2026, disposes of Mantengu's entire shareholding and shareholder claims in the platinum group metals mine. The transaction is structured alongside a loan agreement in which Afresources advanced Mantengu R35-million at prime plus 1%, expected to be settled through a set-off against the purchase consideration.

Mantengu has also pledged its Blue Ridge shares and claims as security under a cession and pledge agreement.

The board's decision followed a comprehensive portfolio review after the company had funded Blue Ridge's monthly expenditure since August 2025 without generating any income. “The situation was no longer tenable to the board,” Mantengu stated.

Blue Ridge contributed R26-million to group losses for the year ended February 28, 2026, with standalone losses of R15.6-million over seven months. The disposal will reduce group liabilities by R185-million and cut monthly operating expenditure by approximately R2-million from August onwards.

Mantengu said that had the sale been completed at February 28 for the R35-million consideration, it would have realised a profit of about R14-million. The final accounting profit will be calculated after accounting for operational losses from March 1 through July.

The company also reaffirmed its decision not to recognise a R570-million liability related to Blue Ridge in its audited results.

“The board's view was that it had fully complied with International Financial Reporting Standards (IFRS) 9 which requires the recognition of the financial liability at fair value, which in the board's view was Rnil because there was no probability whatsoever of Mantengu being liable to the minorities for any amount in respect of the historical debt claims of Blue Ridge,” the company said. “In fact, as stated above, the group's liabilities will decrease by R185-million, let alone not paying out a fictitious R570-million liability.”

As part of the transaction, Blue Ridge has entered into a ten-year sale and contractorship agreement with Afresources, entitling the buyer to establish and operate on the mine pending Section 11 Approval under the Mineral Resources Development Act. From the occupation date, all costs and expenses associated with Blue Ridge will be assumed by Afresources.

The deal remains subject to standard conditions, including ministerial consent under Section 11, which must be secured within 180 days of signing. The transaction is classified as a Category 2 transaction under JSE listing rules and does not require shareholder approval.

Mantengu will not retain any assets or liabilities linked to Blue Ridge once the deal becomes unconditional.