Luiri Gold has entered into a binding share purchase agreement to acquire Aluminium Metal Recyclers (Proprietary) Limited (AMR), a South African company which owns and operates a metal processing facility in Pietermaritzburg, Kwa-Zulu Natal, South Africa. The transaction is expected to be completed around 30 November 2017.
AMR owns a melting facility which re-melts aluminium furnace dross, scrap and off-cuts primarily generated by aluminium processors or fabricators in South Africa. The facility has a total smelting capacity of 1,150 tonnes per month, and is currently permitted to process 600 tonnes per month. A new permit application to increase smelting production to 1,150 tonnes per month has been submitted to the relevant authorities and approval for this increase in capacity is expected soon.
Their newly installed capability re-melts bare scrap into sow format and recovers good quality metal units from furnace dross at competitive yields and operating costs.
AMR was established in 2016 to fill identified shortfalls in recycling capacity and quality in the region. The processing facility includes proprietary innovations to equipment and processes which reduce costs and improve recoveries. This technology forms the basis of the Company’s growth plans.
See ASX Announcement on 7 Sept 2017 for further details.