Main image: SibanyeStillWater/Mining.Com
Mining firm Sibanye Stillwater has offered a A$30 million lifeline to take over target New Century Resources.
This comes after the company was forced to halt operations at its zinc mine in Queensland, Australia, following severe flooding in early March.
Operations are expected to remain suspended for another two to three weeks due to the rainfall.
New Century has warned of production losses of 5,000 tons to 20,000 tons of zinc metal for fiscal year 2023 and has also warned that the production shortfall is likely to have an impact on near-term liquidity.
ASX-listed New Century said earlier this month that it was working with Sibanye-Stillwater on mitigating key operational and business risks, including near-term liquidity issues.
It has now come to the attention of this news publication that the board of JSE and NYSE-listed Sibanye-Stillwater has now approved A$30 million in financial support, subject to certain conditions.
Sibanye-Stillwater said announced Thursday that it remains committed to working with New Century to ensure the safety of the team on site and the safe restart of operations.
“The company also remained committed to working with New Century to ensure it remained able to meet its financial obligations as it recovered from this contingency, subject to certain conditions,” Mining Weekly reports.
“Sibanye-Stillwater has made a takeover offer of A$1.10 per share for New Century and currently holds an 87.64% stake in the company.”