Afarak Group Plc Afarak To Acquire Zeerust Chrome Mine In South Africa

 
TIDMAFRK 
 
 
   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, [phone], [e-mail] 
 
   Jean Paul Fabri, PR Manager, [phone], [e-mail] 
 
   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). 
 
   Distribution: 
 
   NASDAQ Helsinki 
 
   London Stock Exchange 
 
   Main media 
 
   www.afarak.com 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Afarak Group Plc via Globenewswire 
 
 
  http://www.afarakgroup.com 
 

(END) Dow Jones Newswires

September 27, 2017 02:01 ET (06:01 GMT)

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