Chrometco Limited, currently listed on the Alt-X section of the JSE and the Sail Group of Companies “Sail” entered into conditional agreements that will result in Sail acquiring just less than 90% of Chrometco. In return, Chrometco will receive: cash, a controlling stake in two fully financed chrome projects and a stake in Sail Minerals.
Sail is an international commodity trading company with a special focus on chrome. It invented the Chrome market’s benchmark product, Run Of Mine “ROM”. Sail has exported a significant volume of chrome ore over the last few years. Its significant trading volume is enhanced by its innovative market developments, which unlock unique value for both its suppliers and customers.
Sail recently concluded the acquisition of two chrome assets in the Eastern and Western Limb of the Bushveld Igneous Complex respectively. Sail provided and will continue to provide all funding required for the development of both chrome projects. Production is expected to commence imminently and the projects have the joint capability to produce up to 1 million tons of high grade chrome ore per year at a world leading competitive cost.
The combined transaction is still conditional upon ministerial consent from the DMR (section 11 approval), JSE and other regulatory and shareholder approval.
By joining the respective strengths of Sail and Chrometco as well as the potential of two exceptionally good chrome projects, the new entity will be well placed to become a significant player in the chrome market.
Chrometco will continue to update the stakeholders via regular sens announcements.