Assore and African Rainbow Minerals Limited conclude definitive agreements for Assore’s acquisition of a 50% indirect interest in the Dwarsrivier Chrome Mine.
Shareholders of Assore (“Shareholders”) are referred to the announcement released on the Stock Exchange News Service of the JSE Limited (“JSE”) on 27 February 2015, in terms of which Shareholders were advised that Assore and African Rainbow Minerals Limited (“ARM”)(the “Parties”) had reached an in-principle agreement on Assore’s acquisition of ARM’s 50% indirect interest in the Dwarsrivier Chrome Mine (“Dwarsrivier”) (the “Transaction”) for a consideration of ZAR450,000,000 (the “Purchase Consideration”).
Assore is pleased to advise that it has now concluded definitive agreements in respect of the Transaction.
Dwarsrivier is presently owned and operated by Assmang Proprietary Limited (“Assmang”), the equal joint venture between the Parties, and mines chrome ore near Lydenburg in the Mpumalanga province. The ore produced is sold both on the export market and locally. Assmang will sell Dwarsrivier to K2011105280 Proprietary Limited, a special purpose company (“Dwarsrivier SPV”) in which Assore will, pursuant to the completion of the Transaction, own the entire issued share capital.
The completion of the Transaction is subject to a number of conditions precedent (as set out in paragraph 4 below), including the approval by the Minister of Mineral Resources.
The Transaction is deemed to be a Category 2 transaction in terms of the Listings Requirements of the JSE.