Sibanye-Stillwater to Acquire Stake in New Century Resources for Up to $46 Million
Sibanye-Stillwater announced on October 27, 2021, its entry into investment agreements to acquire a 19.99% shareholding in New Century Resources. The transaction, valued at a maximum of $46 million, aims to bolster the company's position in the global tailings retreatment sector.
Sibanye-Stillwater announced on October 27, 2021, that it has entered into agreements to acquire a 19.99% stake in New Century Resources Limited (NCZ). The transaction involves a new equity placement and sub-underwriting of New Century's entitlement offer, with a maximum cash consideration of $46 million.
The deal, expected to close in December 2021, aligns with Sibanye-Stillwater's strategy to build a leading global tailings retreatment business. "This investment in New Century represents a significant next step in our strategy of building a leading global tailings retreatment business, diversified by commodity and geography," stated Sibanye-Stillwater CEO Neal Froneman.
New Century Resources is a significant player in tailings management and rehabilitation, operating the Century tailings zinc retreatment operations in Queensland, Australia. The company converted existing infrastructure to reprocess legacy tailings waste dumps, resuming operations in August 2018.
Sibanye-Stillwater highlighted that New Century is a top 15 global zinc producer, with an annual zinc output of 128 kilotonnes. The company's operations aim to produce green metals and address environmental legacy issues.