Afrimat buys controlling stake in distressed Diro
JOHANNESBURG (miningweekly.com) – JSE-listed Afrimat is marking its entry into the manganese and iron-ore mining sector with its latest acquisition of a majority stake in Diro’s distressed assets for R276-million.
The firm on Tuesday said it was acquiring 60% of Northern Cape-based Diro Manganese and Diro Iron Ore, the operations of which had been halted under financial distress and subsequent business rescue procedures initiated in June.
Manganese and iron-ore producer Diro, which had accumulated some R483-million in debt, had a proven iron-ore reserve of 5.6-million tonnes, along with 1.3-million tonnes of sellable fine ore stockpiles.
“Given Afrimat’s record in turning struggling business around and as part of its diversification and growth strategy, Afrimat has decided to enter the iron-ore sector. The acquisition will complement and augment Afrimat’s product offering and further expand its footprint across South Africa,” Afrimat said in an update to shareholders.
The transaction remains subject to conditions precedent.
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