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Suvo (ASX:SUV) adds to portfolio with Imery deal

Materials
ASX:SUV      MCAP $56.04M
31 December 2020 14:30 (AEST)
Suvo Strategic Minerals (ASX:SUV) - Executive Director, Aaron Banks (left), Executive Chairman, Robert Martin (right)

Source: Suvo Strategic Minerals

Kaolin and silica sand exploration company, Suvo Strategic Minerals (SUV) has completed the acquisition of Imerys Australian kaolin mining operations.

The terms of the agreement, including the payment of $2 million by Suvo to Imerys, have been met by all parties, meaning Suvo will assume control of the business from January 1.

The new mining operations are located west of of Ballarat in Victoria, and consist of Australia’s only operating wet kaolin processing plant, two active kaolin mine deposits and one unused mine deposit. The operations will be conducted on a business-as-usual basis with operational personnel, customers, suppliers and contractors continuing as normal.

As part of the conditions to acquire the business, Suvo will change the names of two target group entities. Imerys Minerals Australia will be renamed Suvo Minerals Australia and Mircal Australia will be renamed Suvo Australia.

A third entity, Kaolin Australia, will retain its name.

The new assets will be added to Suvo’s existing portfolio, consisting of the White Knight Kaolin Project located in the Yilgarn Craton, and the Nova Silica Sands Project located near the township of Eneabba. Both are situated in WA.

Suvo’s Executive Chairman, Robert Martin said of the acquisition, “we are pleased to have transitioned from a kaolin and silica sand explorer to the only wet kaolin producer in the country within a very short five months from our re-listing.”

“We welcome the team at Pittong to the Suvo group and we look forward to working with them to help implement the operation’s next growth phase moving forward.”

Suvo shares are down 2.31 per cent at 12.7 cents at 12:38 pm AEDT.

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