South Africa-based open-pit mining company Afrimat has acquired mining and fertiliser company Glenover Phosphate for $34.32m (R550m) to further diversify its portfolio.
The total consideration comprises $15.57m (R250m) for the company’s assets and an option, at Afrimat’s sole discretion, to buy all Glenover’s shares for $18.69m (R300m).
Glenover owns an advanced phosphate and rare earth project in Limpopo, South Africa. The mineral resources include rare earth oxides, phosphate, niobium and scandium.
Afrimat CEO Andries van Heerden said: “Current reserves of phosphate, vermiculite and rare earth elements provide for a resource life of more than 20 years.
“Afrimat will obtain the inventory deposits of historically-mined resources and extend the life of the project by acquiring the remaining in situ resource.”
The acquisition will add phosphate and rare earth minerals to Afrimat’s offerings enable the company to expand beyond the ferrous metals value chain.
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It is also aligned with Afrimat’s commitment to facilitate job creation and social upliftment to support the South African economy.
van Heerden added: “This transaction provides the group with a new platform for growth while at the same time reducing cyclicality. Phosphate, vermiculite and rare earth minerals will also widen our international geographic market footprint.”
Afrimat supplies commodities such as iron ore, anthracite and manganese, as well as construction and industrial materials.
van Heerden stated that the company is currently debt-free and is recording strong operational cash flows.
It is currently also working to implement a recently acquired Gravenhage Manganese mine.
In another recent transaction, Glacier Lake Resources signed a deal to acquire Kalahari Platinum Project (KalPlats) in South Africa.