The longstop date for the fulfilment of suspensive conditions related to JSE-listed Afrimat’s acquisition of mining company Glenover Phosphate and its Glenover mine has been set for April 30, 2024.

Afrimat announced in December 2021 its intention to acquire 100% of the Glenover mine from current shareholders, with the remaining suspensive conditions being the approval of the Competition Commission and the Department of Mineral Resources and Energy.

At the time, Afrimat had already acquired certain assets and a right to mine select deposits at the mine. This comprised an initial phase of the acquisition, with Afrimat also being given the option to buy all of Glenover’s shares.

The total consideration for the acquisition is R550-million, comprising R250-million for assets and R300-million for Glenover shares – the former of which remains subject to the suspensive conditions.

The acquisition includes phosphate stockpiles and a rare earth, phosphate and vermiculite bearing mining right, which positions Afrimat to enter new commodities.

Afrimat has advised that its implementation of the initial phases of this acquisition have progressed well, with the mine having sold high-grade phosphate into the organic phosphate market already.

The company is undertaking feasibility studies into follow-up phases of the project, which Afrimat says have yielded pleasing results so far.

Meanwhile, one of Glenover Phosphate’s shareholders, Galileo Resources, which has a 30.7% direct and 4.99% indirect investment in Glenover Phosphate through a black economic empowerment company called Galagen, has indicated it wants to receive its R107-million share of the acquisition consideration in cash, rather than Afrimat shares.

The Glenover mine, which is based in South Africa’s Limpopo province, had originally operated as a phosphate mine from 1957 to 1984, producing rare earths as a byproduct.