Afrimat declares formal dispute over unmet Gravenhage sales conditions, pays Glenover R250m
JSE-listed building materials, industrial minerals and bulk commodities company Afrimat has declared a formal dispute as a result of conditions precedent not being met in its acquisition of the Gravenhage manganese mining right and associated assets from Aquila Steel and Rakana Consolidated Mines.
Gravenhage is a long-life near-development manganese resource situated about 50 km north of Hotazel and about 120 km from Afrimat’s existing Demaneng mine, in the Northern Cape.
The conditions precedent needed to be fulfilled by August 20, and included approval in terms of Section 11 of the Mineral and Petroleum Resources Development Act, Competition Commission approval and the granting of a water-use licence.
The conditions precedent also included approval of the Chinese State-owned Assets Supervision and Administration Commission of the State Council for the sale of the assets and the assumption of the assumed liabilities as contemplated in the acquisition agreement being obtained by Aquila Steel.
Meanwhile, a definitive feasibility study for the development was finalised, confirming the technical and economic feasibility of the Gravenhage manganese project based on an initial opencut operation with the potential for subsequent underground mining.
The resource and its significant potential have been well defined by continued exploration drilling.
Further, Afrimat has also paid over R215-million to Glenover Phosphate, as well as R35-million for the inventory deposits and the vermiculite mining right as part of its option to acquire assets and shares of Glenover in an agreement that was entered into in December 2021.
Afrimat has the option to acquire 100% of the shares in Glenover Phosphate for R550-million, subject to the fulfilment of outstanding conditions precedent by November 10.
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