2023-03-23 07:47:31 ET
Sibanye Stillwater ( NYSE: SBSW ) said Thursday it will provide up to A$30M (US$20.1M) in financial support for takeover target New Century Resources ( OTCPK:NWNNF ), which was forced to halt operations at its Queensland zinc mine following heavy rains.
Flooding at the Century mine and Karumba port facility are expected to keep operations suspended for another 2-3 weeks, which would result in a production shortfall that likely would affect short-term liquidity.
Sibanye ( SBSW ) said last month it was launching an off-market takeover offer for all New Century ( OTCPK:NWNNF ) shares it does not already own; Sibanye currently owns 87.64% of New Century, up from 19.9% in February.
Sibanye Stillwater ( SBSW ) cited several factors including a long strike at its South African gold mines and flooding at its U.S. platinum operations when it recently reported its FY 2022 net profit had been cut in half .
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Sibanye Stillwater extends $30M lifeline to New Century