Under the agreement, 100% of the shares in KCM Mining Limited, the owner of the project, are planned to be sold for USD 5.67 million.
According to a statement released by Macro Metals, the sale price was set at USD 5.67 million based on an enterprise value on a debt-free and cash-free basis. Under the agreement, an upfront payment of USD 700,000 will be deposited into an escrow account, while USD 350,000 will be retained by the buyer for a period of 12 months.
The sale consideration corresponds to approximately AUD 8 million at the current exchange rate, while Macro Metals expects to receive net proceeds of approximately AUD 5.1 million after transaction costs. Of this amount, approximately AUD 4.6 million is expected to be received upon completion of the transaction, with the remaining approximately AUD 500,000 to be transferred to the company following the 12-month retention period.
Sale subject to completion of certain conditions
The parties plan to execute the final Share Purchase Agreement (SPA) within 20 business days following the signing of the heads of agreement. Completion of the transaction will be subject to the buyer’s due diligence process, licensing and ownership matters, receipt of the necessary regulatory approvals, and the fulfilment of other conditions.
The conditions of the sale also include the extension of the community development agreement between KCM and the local community at Agbaja until at least December 2031. The agreement covers areas such as local employment, education, and capacity building.
Macro Metals also stated that the heads of agreement is non-binding except for certain provisions and that there is no certainty that the final sale agreement will be executed or that the transaction will be completed.
RSIN Group Expands Steel Investments in Nigeria
The buyer of the Agbaja project, RSIN Nigeria, operates under Nigeria-based RSIN Group. The group has been active in Nigeria for approximately 20 years in the areas of mining, mineral processing, smelting, and steel production, while also co-investing in a new steel plant in Nigeria’s Ogun State.
RSIN Group is among the investors in the Stellar Steel facility being developed in Ogun State together with China-based Inner Galaxy Group.
Macro Metals to Focus on Western Australia
Macro Metals, previously known as Kogi Iron Limited, invested in the Agbaja project for more than a decade. During this period, the company conducted exploration and resource definition drilling, pre-feasibility studies, environmental and social impact assessments, trial mining, and metallurgical research. The company also developed a processing technology aimed at reducing phosphorus levels in the ore to a level suitable for steel production.
Following completion of the sale, Macro Metals plans to focus its activities on mining services and resource development businesses in Western Australia. The proceeds from the transaction are expected to be used to advance the company’s projects in Western Australia and expand its mining services activities.
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