On 7 September 2017 Luiri Gold Limited 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 was approved by Shareholders on 26 October 2017 and the Company was removed from the Official List of ASX on 3 November.
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 described below.
AMR’s director and management team have vast experience in the aluminium industry and in aluminium scrap and dross re-melting:
Doug Timmerman – Director AMR: Employed for 32 years by Hulamin Limited, Africa’s largest semi-fabricator of Aluminium Flat Rolled Products, the last 15 years as Operations Director. Since 2011 he has been an independent consultant. Mr Timmerman has significant experience in capital projects – conceptual to operational, business improvement/optimisation projects, and international consulting in the aluminium industry. In AMR he is responsible for strategic business development.
Jamie Turner – Operations Executive: Machinery and equipment specialist. He was Operations Director at a dross and scrap re-melting company for 12 years prior to joining AMR.
Graeme Elson – Production and Process Specialist: Production and Process management for past 6 years in a similar industry.
On completion of the acquisition Mr Timmerman will be appointed to the Board of Luiri and the Company will be renamed Imritec Limited.