Afarak Group PLC (LON:AFRK) has approved the arrangement for the disposal of subsidiary Ilitha’s plant, assets and mining right.
Ilitha, which owns the Stellite chrome mine in South Africa, is being acquired by WMA Chrome Mining and WMA Minmet Processing.
The total purchase price of R400mln (€23.8mln) is to be paid in three portions with the sale to have "a clear positive effect" on the group's financial result in 2021 and to help working capital, the miner said in a statement.
Afarak said it will receive the first payment within 30 days from the date of signature on the sale, the second within 12 months, and the last portion in monthly instalments over the next approximately five years, starting June 2021.