Cape Lime was established in 1946 and consists of activities related to the mining and processing of Dolomitic and Calcitic Limestone. The operations are presently conducted at two mines located in the Western Cape and has a mining right for a third mine but has to date not commenced with mining activities.
Cape Lime supplies a wide range of products primarily to manufacturing industries producing chemicals, filler, glass, paint and food products. In addition its products are used for water purification, soil treatment, effluent treatment, building and construction.
The Acquisition will complement and augment Afrimat’s industrial minerals product offering and further expand its footprint across South Africa.
The vendors of Cape Lime are the Sarel Pool Familietrust, Gerhard Terblanche Familie Trust, Korum Trust and Dormell Properties 428 Proprietary Limited.
Afrimat will settle the purchase consideration in cash amounting to R252 million and the re-issuing of treasury shares amounting to R24 million. The share settled portion of the purchase consideration will be based on the 30 day Volume Weighted Average Price ("VWAP") of Afrimat as at 9 October 2015.
The Acquisition is subject to a number of conditions, including the satisfactory completion of the due diligence process conducted by Afrimat and its advisors and confirming compliance to Environmental Laws.