Sibanye-Stillwater receives notice from Appian to commence legal proceedings on terminated $1 billion deal
According to the company's statement, the claim commences legal proceedings before the High Court of England and Wales (Commercial Court) against the Group following termination of the share purchase agreements (SPAs) it had concluded with Appian for the acquisition of the Santa Rita and Serrote mines in Brazil.
On October 26, 2021, Sibanye-Stillwater announced its offer to acquire both mines from affiliates of funds advised by Appian Capital Advisory for a cash consideration of US$1.0 billion and a 5.0% net smelter return royalty over potential future underground production at Santa Rita.
The company noted it had terminated the SPAs on 24 January 2022 following a geotechnical event at Santa Rita which it had concluded was and is reasonably expected to be material and adverse to the business, financial condition, results of operations, the properties, assets, liabilities or operations of Santa Rita.
"Sibanye-Stillwater will defend the claim," the company said in a statement.
Santa Rita is one of the largest nickel-cobalt sulphide open pit mines in the world, located in the State of Bahia, Brazil. Serrote is a producing open pit copper mine, currently in ramp up, located in the State of Alagoas, Brazil.
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Sibanye-Stillwater is a leading international precious metals mining company, with a diverse portfolio of platinum group metals (PGM) operations in the United States and Southern Africa, gold operations and projects in South Africa, and copper, gold and PGM exploration properties in North and South America.
The Group is also one of the foremost global PGM autocatalytic recyclers and has interests in leading mine tailings retreatment operations.