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).
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