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Chrometco moves into platinum

Oct 17 2012 14:37 Sapa

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Johannesburg - Chrometco, a chrome explorer, is repositioning itself to move into platinum group metals (PGM), the company said on Wednesday. 

"We would certainly not rule out mergers and joint ventures, or disposal for that matter; everything is for sale at the right price," said managing director Petrus Cilliers.

The company has a single asset - the Rooderand chrome mine.

It said it was poised to acquire from Nkwe Platinum Limited (Nkwe), in an all-share transaction, the platinum group metal rights to the Rooderand asset, complete with exploration data.

"This, with the addition of PGMs from the proposed Nkwe acquisition, has the potential to increase Rooderand's current valuation of R186m to R370m."

He said in a South African exploration context, the company believed it was uniquely and attractively well placed.

"We have some leeway to weather the current economic downturn - no heroics, no drama - all the while keeping our eye open for attractive opportunities and preparing ourselves for the upswing."

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