JOHANNESBURG (miningweekly.com) – Mineral sands miners Iluka Resources and Sierra Rutile have agreed not to terminate their proposed merger amid an ongoing review of the deal by the German Antitrust Authority.
ASX-listed Iluka in August made an offer to acquire Aim-listed Sierra Rutile for £215-million.
The parties announced in September that the German Antitrust Authority had referred the merger for a phase 2 review.
Both companies are working to assist the authority in its review and have agreed to continue discussions with each other until November 4 on how to proceed with the merger.
Meanwhile, Sierra Rutile has also reached an agreement with the Sierra Leone government in relation to capital gains tax payable by Sierra Rutile shareholders in connection with the merger.
Sierra Rutile’s majority shareholder Pala Investments will pay an undisclosed amount in respect of capital gains tax to the government if the merger becomes conditional.
No further payments will be required from Iluka, Sierra Rutile or any of its other shareholders in respect of capital gains tax.