OM HOLDINGS LIMITED has announced that its wholly owned subsidiary, OM Mauritius, has entered into a conditional binding Sale and Purchase Agreement with Exxaro Resources Limited for the sale of its 26% interest in Ntsimbintle Mining Proprietary Limited. The transaction, valued at approximately US$101.4 million (ZAR 1.86 billion), includes not only the shareholding but also associated marketing rights related to the Tshipi manganese ore business. OM Mauritius holds its stake in Ntsimbintle Mining alongside Ntsimbintle Holdings Proprietary Limited, which owns 74% of the company. Together they control a joint interest in Tshipi é Ntle Manganese Mining, a key player operating the Tshipi Borwa Mine in South Africa – one of the world’s top five manganese production sites and a significant asset in the Kalahari Manganese Field. Through its arrangement with Ntsimbintle Holdings, OM HOLDINGS LIMITED maintains an effective indirect interest of 13% in Tshipi. The deal with Exxaro is structured with several important conditions. These include the execution of a new commercial agreement with Exxaro regarding the Tshipi manganese ore business, the establishment of an escrow agreement alongside a warranty and indemnity (W&I) policy, and the obtaining of approvals from South African competition authorities and the South African Reserve Bank. Provided that these conditions are met – expected to be within 15 months of signing and leading to a closing date in early 2026 – Exxaro will release 95% of the transaction payment at closing, with the remaining 5% held in escrow for 12 months as security. The move has been framed by OM HOLDINGS LIMITED’s leadership as a strategic opportunity to unlock value and recirculate capital back into its core operations. The partnership with Ntsimbintle over the years has supported substantial growth in the manganese sector, and the forthcoming relationship with Exxaro, one of South Africa’s leading bulk commodity and energy companies, is seen as further enhancing the company’s portfolio in an industry marked by significant global demand. From a bullish perspective, this transaction is expected to improve OM HOLDINGS LIMITED’s liquidity while refocusing its corporate strategy on its core operations. The involvement of Exxaro—an established industry leader with a diversified asset base and a market capitalisation of around US$2.76 billion—adds credibility and potential for future collaborative growth in the mining sector. However, from a bearish viewpoint, the success of this transaction hinges on the fulfillment of several regulatory and commercial conditions, which introduces an element of uncertainty. Delays in regulatory approvals or difficulties in meeting the required suspensive conditions could postpone or complicate the cash realization and strategic benefits anticipated.