Nov. 9, 2010 - Synergy Africa, a joint venture (JV) between Finnish group Ruukki and UK-based investment holding company Kermas, has extended the deadline of its 37-million cash takeover offer for Chromex Mining to November 29.
Synergy Africa, which was established specifically for the purpose of acquiring Aim-listed Chromex, on Tuesday reported that it had received valid acceptances for 83,74% of the issued share capital of Chromex by November 8, the initial deadline for the offer.
Further, it had also received valid acceptances for 92,2% of the total Chromex warrants in issue.
When the offer was first announced on September 30, Synergy Africa had already received irrevocable undertakings from 51,7% of Chromex shareholders to accept the deal.
Ruukki expects the acquisition to increase the production capacity of its subsidiary Ruukki South Africa, which holds the Mogale Alloys operation.
Mogale comprises only processing facilities, without the security of chrome ore supply, which is procured from several sources on short-term contracts.
Chromex owns two assets, Stellite and Mecklenburg, located on the Bushveld Complex in South Africa, as well as operations in Zimbabwe.
The Stellite mine, which was already operational and about 80 km from Ruukki's Mogale operation, was being ramped up to produce 40 000-t/m run-of-mine (ROM) ore.
Chromex intends to eventually start mining at Mecklenburg, which is expected to ramp up to produce 60 000 t/m of ROM ore.
The chrome ore supply was expected to play an important role in Ruukki South Africa's processing growth plans. It was considering potentially building two 70-MW dc furnaces at the Stellite mine, which would have a combined capacity of 280 000 t/y of chrome.
Kermas is the largest shareholder in Ruukki South Africa and holds a 49% stake in Synergy Africa. The Ruukki Group holds 51% of the JV company.
