Afarak Group Plc Afarak To Acquire Zeerust Chrome Mine In South Africa
27 September 2017 - 4:01PM
UK Regulatory
TIDMAFRK
07:00 London, 09:00 Helsinki, 27 September 2017 - Afarak Group Plc
("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)
AFARAK TO ACQUIRE ZEERUST CHROME MINE IN SOUTH AFRICA
Minimum opencast ore reserves of 2 million tonnes
Afarak's shaking table technology will be used to process 1.2 million
tonnes of tailing dump
Mogale to become first South African smelter producing high carbon FeCR
Afarak Group plc, through its South African subsidiary Afarak Mining
Limted, has reached an agreement in principle to acquire a 70%
shareholding in ZCM (Zeerust Chrome Mine) from Afrika Mineral Trading &
Investment Trust ("AMTIT"), with the remaining 30% to be allocated to
workers, community and other BEE partners. The transaction will amount
to ZAR20 million and will be effected over a 12-month period.
The conclusion of the final sale and purchase agreement is planned
during the month of October 2017, subject to documentation and
completion of the final legal due diligence process.
The ZCM mine has an opencast ore resource of about 2 million tonnes if
mined up to 35 meters high wall. Additional capacity exists in the 1.2
million tonnes tailing dump. Afarak has amassed extensive expertise with
shaking table technology, which it already employs in its mining
operations in South Africa and Turkey, allowing it to produce
significant quantities of concentrate at a comparatively low cost from
the tailings.
In addition to the mine, the assets to be acquired include an existing
processing plant, with a production capacity of 15,000 tonnes a month,
900 hectares of farm land and 20 houses.
Guy Konsbruck, Afarak's CEO, said that "This acquisition further
bolsters our position as a leading specialty alloys producer. Afarak
specifically targeted ZCM due to the unique quality of its chrome ore.
By leveraging our in-house technical expertise and controlling our own
production of ZCM high quality ore, we are now in the position to make
Mogale the only South African smelter capable of producing High Carbon
FeCr , further differentiating our product range and increasing the
contribution of higher yielding specialty alloys in our production
output."
AFARAK GROUP PLC
Guy Konsbruck
CEO
For additional information, please contact:
Afarak Group Plc
Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@afarak.com
Jean Paul Fabri, PR Manager, +356 2122 1566, jp.fabri@afarak.com
Financial reports and other investor information are available on the
Company's
website: www.afarak.com.
Afarak Group is a specialist alloy producer focused on delivering
sustainable growth with a Speciality Alloys business in southern Europe
and a FerroAlloys business in South Africa. The Company is listed on
NASDAQ Helsinki (AFAGR) and the Main Market of the London Stock Exchange
(AFRK).
Distribution:
NASDAQ Helsinki
London Stock Exchange
Main media
www.afarak.com
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Afarak Group Plc via Globenewswire
http://www.afarakgroup.com
(END) Dow Jones Newswires
September 27, 2017 02:01 ET (06:01 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Afarak (LSE:AFRK)
Historical Stock Chart
From Apr 2024 to May 2024
Afarak (LSE:AFRK)
Historical Stock Chart
From May 2023 to May 2024