Amigo Resources to acquire Kamiesberg mineral sands project for $33m

Amigo Resources PLC has made a deal to buy a mineral sands project in South Africa for $33 million. The company's subsidiary, Rare Earths Development Pte Ltd, will purchase 100% of the equity from Zirco Resources (SA) Holdings and Cyndara 14. The Kamiesberg Mineral Sands Project, located on the West Coast, has a JORC Resource of 2.71 billion tonnes, including 482 million tonnes of Measured Resource.

The resource contains 3.30% total heavy minerals, including ilmenite, leucoxene, monazite, rutile, and zircon. Amigo plans to fund the purchase and development through internal sources and debt/equity raising. The company aims to own 51% of the subsidiary after completion, subject to ownership adjustments. The deal is a reverse takeover under UK Listing Rules and is subject to various approvals, including shareholder approval, FCA, London Stock Exchange, and South African Minister of Mineral Resources and Energy.

Amigo will manage and operate the project, targeting a phased modular development with an initial processing module of about $15 million, expected to be commissioned within six months of completion. The project will have an aggregate processing capacity of up to 16 million tonnes per annum across up to five standard units. Shore Capital is the transaction sponsor, and Ashurst Perkins Coie provides legal counsel.