MRI signs share purchase agreement for Langpan chrome, PGMs operation
2020-08-21 11:51:51 [Print]
Mine Restoration Investments (MRI) has signed a share purchase agreement with the shareholders of Langpan Mining Company.
Under the terms of the agreement, the vendors of Langpan will dispose of their entire shareholding in Langpan for R550-million in shares.
Langpan mines and processes chrome ore to form chrome concentrate, with a by-product having a high concentration of platinum-group metals (PGMs).
Langpan owns the plant, machinery and mining rights, respectively, in relation to the chrome and PGM mining and associated beneficiation operations on the Langpan 371KQ farm, in Limpopo.
Langpan is currently mining the high-grade chrome seams on site to sell high-grade unprocessed chrome ore to the market. It has a five-year supply agreement in place with Scutella Ventures, which was signed in October last year.
The proposed transaction is a first step towards MRI's transformation into a mining house that promotes rural investment into sustainable mining projects on an inclusive and equitable basis. The transaction will enable MRI to transform from a cash shell and position itself to achieve its rural investment mandate.
Meanwhile, MRI will seek to raise about R15-million through a partially underwritten renounceable rights offer, at a subscription price of 0.1c per rights offer share. These shares will be issued simultaneously with the consideration shares for the Langpan shareholders.
Under the terms of the agreement, the vendors of Langpan will dispose of their entire shareholding in Langpan for R550-million in shares.
Langpan mines and processes chrome ore to form chrome concentrate, with a by-product having a high concentration of platinum-group metals (PGMs).
Langpan owns the plant, machinery and mining rights, respectively, in relation to the chrome and PGM mining and associated beneficiation operations on the Langpan 371KQ farm, in Limpopo.
Langpan is currently mining the high-grade chrome seams on site to sell high-grade unprocessed chrome ore to the market. It has a five-year supply agreement in place with Scutella Ventures, which was signed in October last year.
The proposed transaction is a first step towards MRI's transformation into a mining house that promotes rural investment into sustainable mining projects on an inclusive and equitable basis. The transaction will enable MRI to transform from a cash shell and position itself to achieve its rural investment mandate.
Meanwhile, MRI will seek to raise about R15-million through a partially underwritten renounceable rights offer, at a subscription price of 0.1c per rights offer share. These shares will be issued simultaneously with the consideration shares for the Langpan shareholders.
