CM has signed a share purchase agreement with Tian Yuan Manganese Limited (TMI), a subsidiary of Ningxia Tianyuan Manganese Industry.
According to this agreement, CM has agreed to transfer all its rights and title to the purchaser.
TMI president Tianjiang Jia said: “We are excited to invest in Consolidated Minerals and look forward to partnering with the existing management team in developing the company’s operations for the benefit of all stakeholders.”
Consolidated Minerals owner Gennadiy Bogolyubov said: “I am delighted that TMI wish to invest in CM. TMI, as CM’s largest customer, has extensive experience in this industry and I believe that CM will be well-positioned to achieve its next phase of growth and development under the ownership of TMI after the Transaction.”
TMI has indicated its willingness to invest significant resources to develop CM operations in Ghana. This support will help CM to boost its manganese export capacity and meet the increasing demand.
This transaction is subject to government consent, shareholders' approval and the execution of an offtake agreement between Manganese Trading, a subsidiary of CM and Grizal Enterprises.
If all conditions of this transaction are not satisfied within six months beginning 15 November, this agreement will stand terminated. However, both parties can extend the date based on mutual consent.
As per the offtake agreement, Grizal may purchase from MTL, in any calendar year, not more than 600,000 metric tonnes of Ghanaian manganese ore for a period of ten years.
CM owns mining assets in Ghana and Australia and conducts its operations through four subsidiaries.