Mantengu to acquire NSRC, gaining indirect stake in Kilken Platinum

Mantengu Limited has entered a binding term sheet to acquire 100% of New Salt Rock City Proprietary Limited (NSRC). This acquisition will give Mantengu an indirect 60% ownership of Kilken Platinum Proprietary Limited (Kilken), which holds 70% of the Kilken Imbani Joint Venture (Kilken JV). The Kilken JV, an integrated processing operation, extracts Platinum Group Minerals (PGMs) from tailings at the Amandelbult mine, producing approximately 60 kilograms of PGMs monthly. The operation has an expected life exceeding 50 years.

The purchase consideration for NSRC will be a combination of cash and Mantengu shares, with the final amount to be mutually agreed upon following due diligence. Mantengu will appoint its chief executive, Mike Miller, and chief financial officer, Magen Naidoo, to Kilken's board immediately. The acquisition is subject to a three-month due diligence period and necessary internal and external approvals, including a formal valuation of Kilken by an independent corporate finance expert.

Kilken JV’s audited financial statements for the year ended 31 December 2019 showed revenue of R225 million, a gross profit of R135 million, and a profit after tax of R108 million. A July 2020 valuation report by Mazars Corporate Finance (Pty) Ltd. assessed the Kilken JV at R4.435 billion. Shareholders are advised to exercise caution until further announcements regarding the purchase consideration and regulatory requirements are made.