Sesa Goa has signed a definitive share purchase and operation agreement with Elenilto Minerals & Mining LLC, Delaware (Elenilto), under which Sesa Goa has agreed to acquire 51% of the outstanding common shares of Western Cluster (WCL), Liberia for a cash consideration of $90 million. With this acquisition, the company will become a significant player in the upcoming West African Iron Ore hub. Further, the company’s acquisition of the 51% majority stake in WCL is subject to ratification of the Mineral Development Agreement (MDA) by Legislature of Liberia.
WCL is a wholly owned subsidiary of Elenilto which is the winner of a bid for the development of the Western Cluster iron ore deposits pursuant to a tender floated by Government of Liberia (GOL). WCL will carry out the development of project as per the provisions of a MDA executed with the GOL. WCL has attractive mining assets having long mine-life with access to potential iron ore resources of over 1 billion tonnes (approximately 330 mt saleable product) and close proximity to existing port infrastructure and access to land for railway corridor.
Further, WCL acquisition is a logical and strategic fit for Sesa Goa’s existing iron ore business and is expected to create significant long term value for all shareholders through leveraging Vedanta and Sesa’s proven mining and project management skills to develop and optimize WCL’s mines and plants, access to attractive mining assets with long life having potential iron ore resources in excess of 1 billion tonnes together with significant upside opportunity and establishing a strong presence in the upcoming iron ore hub catering to seaborne iron ore trade.
|Ram Ratna Wires||162.40|