The longstop date for the fulfilment of suspensive situations associated to JSE-listed Afrimat’s acquisition of mining firm Glenover Phosphate and its Glenover mine has been set for April 30, 2024.
Afrimat introduced in December 2021 its intention to accumulate 100% of the Glenover mine from present shareholders, with the remaining suspensive situations being the approval of the Competitors Fee and the Division of Mineral Sources and Vitality.
On the time, Afrimat had already acquired sure property and a proper to mine choose deposits on the mine. This comprised an preliminary section of the acquisition, with Afrimat additionally being given the choice to purchase all of Glenover’s shares.
The whole consideration for the acquisition is R550-million, comprising R250-million for property and R300-million for Glenover shares – the previous of which stays topic to the suspensive situations.
The acquisition contains phosphate stockpiles and a uncommon earth, phosphate and vermiculite bearing mining proper, which positions Afrimat to enter new commodities.
Afrimat has suggested that its implementation of the preliminary phases of this acquisition have progressed nicely, with the mine having offered high-grade phosphate into the natural phosphate market already.
The corporate is enterprise feasibility research into follow-up phases of the venture, which Afrimat says have yielded pleasing outcomes up to now.
In the meantime, one in every of Glenover Phosphate’s shareholders, Galileo Sources, which has a 30.7% direct and 4.99% oblique funding in Glenover Phosphate via a black financial empowerment firm known as Galagen, has indicated it needs to obtain its R107-million share of the acquisition consideration in money, relatively than Afrimat shares.
The Glenover mine, which is predicated in South Africa’s Limpopo province, had initially operated as a phosphate mine from 1957 to 1984, producing uncommon earths as a byproduct.