- Published on 28 July 2017
Northam is pleased to announce that it has entered into binding transaction agreements pursuant to which it will acquire platinum group metals (“PGM”) recycling equipment located in Pennsylvania, United States of America (“US”) (“PGM Recycling Equipment”), as well as immoveable property comprising land and buildings for the PGM Recycling Equipment (“Premises”), (collectively, the “Transactions”).
The aggregate consideration payable by Northam in respect of the Transactions amounts to approximately USD10.7 million, to be settled in cash. Closing and settlement of the Transactions are envisaged to take place by no later than 1 September 2017.
BACKGROUND INFORMATION AND RATIONALE
The PGM Recycling Equipment will be acquired from A-1 Specialized Services Inc., a recycler of PGMs from automotive catalysts. The PGM Recycling Equipment comprises, inter alia, multiple ceramic catalytic converter processing lines and ancillary equipment, including sampling and separation systems, transportation and a materials handling fleet.
The Premises consist of approximately 30 acres of land as well as buildings measuring approximately 301,000 sq.ft used for warehousing, manufacturing and office space. It has direct access to excellent surrounding infrastructure, including roads and a direct rail connection.
The Transactions afford Northam as an integrated primary and secondary producer, the opportunity to expand and diversify its business interests into PGM recycling. Northam will be able to participate in the growing demand for recycled PGMs from autocatalysts and maintain and develop a strategic footprint in North America.
Paul Dunne, Northam’s Chief Executive Officer, said “the Transactions represent a low cost entry by Northam into a key segment of the broader PGM market. Northam has secured an excellent asset base of strategic future importance.”
The Transactions fall below the threshold for categorisation in terms of the JSE Limited Listings Requirements and this announcement is provided for information purposes only.
28 July 2017
Corporate Advisor, Sponsor and Debt Sponsor