Struggling Aldridge agrees to be bought by Virtus Mining
Troubled Turkey-focused junior Aldridge Minerals has agreed to be bought by Virtus Mining – a development-stage mining company in which Aldridge director Ahmet Taçyildiz will indirectly hold 70%.
Virtus will acquire all the issued and outstanding common shares of Aldridge for C$0.10 in cash, representing a 25.5% premium to the volume-weighted average trading price of the TSX-V-listed company’s shares over the last 90 trading days.
Virtus has also agreed to loan Aldridge up to $700 000 in order to permit Aldridge to fund its near-term working capital requirements pending closing of the transaction.
The Aldridge board has determined that the transaction was the best way forward, given the current difficult conditions and the limited options available to the company.
The firm is facing significant challenges in raising development capital for the Yenipazar polymetallic gold, silver, copper, lead and zinc project. An optimisation study demonstrated that the project is highly robust with an after-tax net present value of $330-million at a 7% discount rate and an after-tax internal rate of return of about 32%.
However, Aldridge has not only been unable to secure project financing and has also struggled to raise adequate working capital. As a result, the company has seen its cash balance decline and faces a looming liquidity crisis in light of its obligations under its $40-million secured term credit facility with Banka Kombetare Tregtare.
The facility matured on September 16, but Aldridge failed to repay BKT. It has not yet been issued a written notice of default.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
ALBIS FLANGES — founded in 1965 — is a petro-chemical approved manufacturer of flanges and fittings in most grades of steel, listed with Sasol,...
VISIT SHOWROOM
Sulzer South Africa, established in 1922, partners with critical industries like power, oil & gas, water, mining, and chemicals to boost...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
