JSE-listed Chrometco reports that it has received notice from its largest independent creditor, the Industrial Development Corporation of South Africa (IDC), of its intention to adjourn the meeting of creditors scheduled for April 18, to consider the proposed business rescue plan for the Black Chrome mine.
On April 13, Chrometco confirmed that the plan had been published on March 31.
The IDC’s proposal was put to the creditors during the April 18 meeting and was passed in a vote exceeding 50% of the creditors at the meeting.
The meeting was adjourned to May 16.
Meanwhile, on April 18, in a statement, Chrometco also reported that the company had, through its majority-owned subsidiary Rooderand Chrome entered into a sale of mining rights agreement with Mahlopi Metals.
In terms of the agreement, Rooderand will dispose of its rights to mine chrome mineral deposits to the buyer for R35-million.
Rooderand owns the mining rights over the properties situated in the western limb of the Bushveld Igneous Complex in the North West province, which was last mined in 2014 and is currently dormant.
The mining rights are a dormant asset of the company and are unused and accordingly are being disposed of to fund the operations of the company.
The disposal consideration will be applied to fund other operations within the company’s group of companies.
The disposal is subject to the fulfilment of the condition precedent that the mining rights are transferred and/or granted to the purchaser by the relevant authorities.
The effective date of the disposal will be five business days after the fulfilment of the condition precedent, anticipated as July 5.
The value of the mining rights as at March 31, being the date of the latest unpublished management accounts of Rooderand, was R90.1-million.
The loss before tax attributable to the mining rights for the period ended February 28, was R664 247, based on unpublished management accounts of Rooderand.