Industrial minerals group Afrimat is continuing on the takeover trail and has announced a R550m deal to buy phosphate, vermiculite and rare earth mining rights from Glenover Phosphate on a deposit situated near Thabazimbi in Limpopo Province.
This follows the deal struck by Afrimat in May this year to acquire the Gravenhage manganese mining right and assets in the Northern Cape for R650m.
According to an Afrimat announcement the latest acquisition “will expand Afrimat’s product offering to include a new future mineral segment in support of its greater diversification strategy.”
The company added that Glenover “reduces Afrimat’s exposure to the ferrous metals value chain by providing a multi-commodity product which addresses fundamental needs and trends including the agriculture and food industry as well as new technology applications.
“Furthermore, Glenover has the ability to provide minerals into various sectors such as fertilisers and magnets for electric motors. This provides Afrimat with a new platform for growth whilst at the same time reducing cyclicality.”
The acquisition has been structured through a sale of assets agreement and a sale of shares agreement which are subject to a string of suspensive conditions including the granting of mining rights and water use licence application by June 15 next year.
The Glenover deposit has a resource life of more than 20 years which Afrimat says it can extend by “acquiring the remaining in situ resource by exercising the option and implementing the sale of shares agreement.”