Sylvania Resources
The first project is a 25% interest in the CTRP consortium which is led by Aquarius Platinum Limited. The consortium constructed a purpose built plant at the Kroondal Mine to extract platinum group metals (platinum, palladium, rhodium and gold) from the tailings of the nearby Xstrata and LanXess chrome mines. The CTRP plant is managed by Aquarius Platinum Limited and has been in production since January 2005.
The second project involves the recovery of chromite and PGM from the tailings of Samancor’s chrome mines. Sylvania’s first chrome recovery plant, located at the Samancor Millsell Mine, has been producing metallurgical grade chromite concentrates since August 2006. A flotation plant to recover PGM from the tailings from this chrome plant is presently under construction at Millsell. Additional chromite and PGM recovery plants are under construction at Samancor’s Steelpoort Chrome Mine.
The Everest North UG2 project, is located on the farm Vygenhoek, on the Eastern Limb of the Bushveld Complex. Sylvania is conducting exploration drilling as the initial part of a feasibility study regarding the development of mining and processing facilities for UG2 ore.
Sylvania Resources sweetens share offer for Great Australian Resources
Sylvania Resources (ASX/AIM: SLV) has today increased its takeover offer for all the ordinary shares in Great Australian Resources Limited (ASX: GAU) to 1 Sylvania share for every 12 Great Australian Resources shares.
Investors liked the increased offer and potential merged entity, bidding the GAU price up by 68% and the Sylvania share up by 4%.
Based on today's price, the offer is worth 12.9 cents per share to GAU shareholders which is a very healthy premium compared to the GAU share price of 9.6 cents.
Sylvania had previously offered 1 Sylvania share for every 18 Great Australian Resources shares in May 2009.
In May, Sylvania also announced an intention to make an off-market takeover offer for all of the ordinary shares in SA Metals Limited (ASX: SXM) (formerly Pan Palladium Limited (ASX: PPD).
For Sylvania shareholders, the two takeover targets may offer compelling synergies. They would meld the company's tailings retreatment operations and shallow mining exploration interests located on South Africa’s PGM-rich Bushveld Igneous Complex in South Africa with GAU's platinum projects and exploration activities within the Bushveld Complex. SA Metals also has exploration projects in the Bushveld Igneous Complex of South Africa.
Strategically, the combination of the PGM assets of Sylvania and GAU would provide an opportunity to create long term benefits and value for the shareholders of both companies through synergies and enhanced efficiency. Further, the acquisition of SA Metals would strengthen the combined entity's interest in PGM projects in South Africa.
Total consideration payable by Sylvania under the increased offer, assuming 100% acceptance, would be approximately 8,873,854 Sylvania shares, equivalent to a value of approximately A$8.8 million based on the closing price of Sylvania shares on ASX on 11 May 2009.
Sylvania is in the process of preparing a formal Bidder's Statement and will lodge that document with the ASX and ASIC in due course.
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Other Sylvania Resources news
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04/02/10 Jubilee Platinum and Sylvania Resources formalise ConRoast PGM smelting partnership, create 2 new JVs
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30/06/09 Finland’s Ruukki to buy Sylvania Resources for €268 mln
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24/06/09 Sylvania Resources confirms preliminary approach for company
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11/05/09 Sylvania plans off-market offers for SA Metals and Great Australian Resources
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23/03/09 Sylvania Resources completes commissioning of platinum recovery plant
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27/10/08 Sylvania Resources places three exploration projects into Great Australian Resources