Sibanye-Stillwater to finance emergency at New Century Resources
Johannesburg – Sibanye-Stillwater has approved financial support of up to A$30 million for New Century Resources Limited (New Century), subject to certain conditions.
As announced by New Century on 9 March 2023, record levels of rainfall affecting North Queensland resulted in flooding at the Century mine and Karumba port facility during early March 2023.
No safety incidents were experienced, and core infrastructure remains secure, however, due to the extent of the flooding event, operations are currently estimated to remain suspended for a further 2-3 weeks, resulting in an approximately 15kt-20kt of zinc metal production being affected.
The Target’s Statement issued by New Century on 17 March 2023 in response to Sibanye-Stillwater’s takeover offer (Refer to Target’s Statement) highlighted to shareholders that “Recent weather events have created a production shortfall that is likely to impact on the Company’s short term liquidity position” and “As noted in the half-year accounts to 31 December 2022, a material uncertainty exists that may cast significant doubt on New Century’s ability to continue as a going concern as a standalone entity”.
Background to the Takeover Bid
Sibanye-Stillwater on 21 February 2023 announced its intention to make a takeover bid via its Australian subsidiary to New Century shareholders, to acquire up to 100% of New Century’s share capital through an off-market takeover bid.
The takeover bid opened for acceptance by New Century shareholders on 7 March 2023 (with the distribution of Sibanye-Stillwater’s Bidder’s Statement), and will close on 11 April 2023 unless extended.
Sibanye-Stillwater is a multinational mining and metals processing Group with a diverse portfolio of operations, projects and investments across five continents. The Group is also one of the foremost global recyclers of PGM autocatalysts and has interests in leading mine tailings retreatment operations.
