Chemaf Resources Limited to be purchased

The Chemaf Resources Limited is set to be acquired. Norin Mining Kingco, a wholly owned subsidiary of Norin Mining announced the move to purchase the DRC cobalt miner as a strategy to address the financial difficulties that the firm faced.

This move is also significant for the development of the DRC’s mining sector and promises long-term benefits for the region. The share purchase agreement with CRL’s parent company, Chemaf Group, entails Norin Mining Kingco acquiring all shares in CRL, while Chemaf S.A. will remain a subsidiary of CRL. Additionally, Norin Mining Kingco will acquire the direct shareholding of Chemaf founder and chairman Shiraz Virji.

Customary conditions

The sale, which has received approval from the DRC Government, will indirectly change the control of Chemaf. However, the transaction remains subject to customary conditions, including approvals from Chemaf’s partner at Mutoshi, Gecamines, and Chinese regulatory bodies. Chemaf had previously put itself up for sale due to financial constraints that hindered progress on its two Congo projects – the Etoile mine expansion and the Mutoshi greenfield mine development.

Shiraz Virji expressed satisfaction with the new ownership, stating, “I am pleased to have found a new owner that can invest in completing the development of Etoile Phase 2 and Mutoshi, which will benefit the DRC for decades to come.” Proceeds from the sale will be used by Chemaf to meet creditor obligations, settle debts, and support the expansion of the Etoile mine and the development of the Mutoshi project.

Jeremy Meynert, advisor to the Chemaf Group of Companies and Shiraz Virji, added, “Following a highly competitive international auction process, we are pleased to have signed a transaction with Norin Mining, which will allow CRL and Chemaf to meet their obligations to existing lenders and creditors. Importantly, Chemaf has found a new owner, Norin Mining, which has the experience and commitment to build on Shiraz Virji’s legacy and deliver the Etoile Phase 2 and Mutoshi projects.”