JOHANNESBURG (miningweekly.com) – Definitive agreements have been inked for Assore’s R450-million buyout of African Rainbow Minerals’ (ARM’s) 50% indirect interest in the Dwarsrivier chrome mine, in Mpumalanga.
The deal would see Assore gain full ownership of the mine, which was owned and operated by Assore and ARM’s joint venture, Assmang, through a special purpose vehicle (SPV).
Assmang would sell Dwarsrivier to the SPV, in which Assore would, upon completion of the deal, own the entire issued share capital.
“Assore is of the view that the long-term fundamentals for the chrome ore market support an investment into the commodity.
“Having participated in the ownership of Dwarsrivier, through Assmang, Assore believes the transaction offers it an opportunity to make such an investment into a world-class operation, and to expand its own chrome capacity,” the company said in an update to the market.
Assore agreed to refund any Dwarsrivier investments made between July 1, 2014, and the completion of the sale, up to R800-million, with any cash profits earned by the operation in the stipulated period to be transferred to the SPV.