JOHANNESBURG (miningweekly.com) – As part of its ongoing business rescue process, Aim-listed International Ferro Metals (IFM) has completed the R300-million sale of its local subsidiary to Samancor Chrome.
The balance of R10-million is payable upon transfer of the immovable properties, with proceeds distributed to creditors of the subsidiary International Ferro Metals South Africa (IFMSA).
The remaining transactions, for which conditions are also in the process of being fulfilled, will see R140-million raised for the IFMSA mining right and beneficiation plant, as well as R70-million for IFMSA’s claims against Sky Chrome and IFM’s sale of Sky Chrome’s equity for R100.
The outstanding conditions include obtaining regulatory approvals, specifically Ministerial approval for the transfer of mining rights, and consents of other parties to certain material contracts.
In August 2015, the company took the decision to enter business rescue owing to deteriorating business conditions impacting on its Lesedi mine and ferrochrome smelting operations.
The company fell into financial distress as, since the start of the 2015 financial year, the group suffered from a downtrend in its operations and profitability.
The company reported a loss before tax of R176-million for the half-year ended December 31, 2014.
Rising electricity costs and interruptions to power supply further negatively impacted on IFM.