Afrimat has advised that on 8 December 2021 entered into an agreement with Glenover Phosphate in terms of which Afrimat agreed to acquire (either itself or via a nominated subsidiary) from Glenover certain assets including principally the right to mine the vermiculite deposit and certain deposits of phosphate rock located at the Glenover Mine, owned by Glenover for a purchase consideration of R550 000 000.
Glenover is located 90km northwest of Thabazimbi in the Lephalale Municipality in the Limpopo province. Glenover currently owns a prospecting right over the property it owns to mine high-grade phosphate, vermiculite and rare earth elements.
Current reserve statements provide for a resource life of more than 20 years. Afrimat will obtain the Inventory Deposits of historically mined resources and can extend the life of project by acquiring the remaining in situ resource by exercising the Option and implementing the Sale of Shares Agreement.
The Acquisition will expand Afrimat’s product offering to include a new future mineral segment in support of its greater diversification strategy.
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, i.e. fertilisers and magnets for electric motors. This provides Afrimat with a new platform for growth whilst at the same time reducing cyclicality.
The Acquisition further bolsters Afrimat’s commitment to the South African economy, enabling job creation, skills transfer and training, food security, social upliftment in surrounding communities, and ensuring South Africa is a player in the world stage for minerals used in future technology applications.