WEEE, lightbulb and batteries recycler Mercury Recycling is to take over the Iron Ore Assets business of Sylvania Platinum in a reverse takeover.
As a result, it will gain the prospecting rights and future mining rights in the Northern Lobe of the Bushveld Complex north of Mokopane, South Africa.
Mercury Recycling intends to carry out a placing of new ordinary shares with the proceeds from the placing being used to fund the development of the iron ore assets and for general working capital requirements. It will issue 203,022,285 fully paid ordinary shares in Mercury Recycling worth £13.7 million to Sylvania Platinum.
As a result, Sylvania shareholders will hold approximately 85 per cent of the issued share capital of Mercury Recycling.
Both Terry McConnachie, the chief executive of Sylvania Platinum and Peter Cox, chief executive of Iron Ore Assets will be appointed directors of Mercury Recycling upon completion of the acquisition of Iron Ore Assets.
Mercury Recycling operates out of a single site in Manchester, which is currently one of the largest lamp recycling facilities in Europe.