Afrimat concludes Glen Douglas acquisition of dolomite

Dec. 9, 2010 - JSE-listed materials supplier Afrimat said on Wednesday that it had concluded the R35-million acquisition of the Glen Douglas openpit dolomite mine, in Gauteng, from diversified miner Exxaro.
The acquisition would become unconditional on January 1, from which date Afrimat would take management control.
Afrimat reported that the first agreement conditions for the acquisition, including obtaining all regulatory approvals from the Minister of Minerals and regulatory approval for the transaction, have been met.
However, Exxaro and Afrimat have agreed to waive the condition of obtaining the necessary environmental rehabilitation guarantees and procuring that the seller be released from all guarantees provided to the Department of Mineral Resources (DMR), as Afrimat has already made good progress in providing the required guarantee to the DMR.
The waiver conditions stipulated that Afrimat would indemnify Exxaro against any damages and claims relating to the guarantees required by the DMR and would procure an undertaking from the DMR that Exxaro would be released from all guarantees provided to the DMR.
The acquisition would pave the way for expansion into the industrial minerals market in line with Afrimat's diversification strategy.