HomeBase MetalsUS company buys into SA chrome mine

US company buys into SA chrome mine

Ruighoek mine plant 
Sydney, Australia — MININGREVIEW.COM — 06 March, 2008 – Australian-listed Chrome Corporation Limited – which has been developing the Ruighoek open-cut chrome project on the western limb of the Bushveld Complex – has agreed to sell Amcol International Corporation of the United States its controlling interest in the South African operation.

In a letter to the Australian Stock Exchange released here late yesterday, Chrome Corporation pointed out that the sales agreement was subject to shareholder approval and South African regulatory approval. It was for the sale of its 74% interest in the Ruighoek project at a price of A$41 million (R250 million).

A further condition of the agreement is that Amcol will loan Chrome Corporation US$6 million R45 million) as at the signature date to enable Chrome Corporation Limited to redeem the listed convertible notes which matured on 28 February 2008. The loan is repayable at settlement from the proceeds of the sale.
Cut-off date for the agreement will be 30 June 2008, or such other date as agreed between the two parties.

Amcol – a New York Stock Exchange-listed company based in Arlington Heights, Illinois – is a leading international producer of value-added specialty minerals and related products. The company – which operates in 26 countries – is a major participant in the global chrome foundry sands market, and is looking to increase its presence in the South African chrome industry with this purchase.