Merafe Resources acquires 20.5 percent stake in Unicorn Chrome from Glencore
Merafe considers the acquisition of Unicorn Chrome a valuable addition to its chrome interests.
Merafe Resources has acquired a 20.5 percent stake in Unicorn Chrome from Glencore for R32.2 million.
The company said in a statement that it had sufficient cash reserves to complete the acquisition of Unicorn Chrome, which it considers a “valuable addition” to its chrome interests.
“Merafe considers this acquisition as a long-term strategic investment which will place the company in a better position and ahead of its peers from an operational perspective. Given the cyclical nature of the mining industry, prudent cash management is crucial, especially now during Covid-19,” the statement read.
The company also said that the acquisition was not subject to shareholder approval and that it had appointed Tamela Holdings as the independent expert to provide an opinion on the fairness of the acquisition.