Immediately news broke out of the proposed takeover of Sierra Rutile Limited by PRM the share price rise by 34%. At the global financial market this is what happened when good takeovers are announced. The hike is normally generated from the goodwill and reputation built over the years by the proposed company.
PRM the investment arm of Gerald Group, a US company with over 60years track record made a $40m takeover of the remaining shares being offered on the Australian Stock Exchange.
PRM already have 11.46% interest and voting right in the mineral sand mining company that was originally founded in 1971 by US based steel company Armco and Nord Resources.
Prior to PRM bid Sierra Rutile had suspended all mining and processing activities which will result in about 25% of staff mostly Sierra Leoneans losing their jobs. It is hope that this new takeover will not only save their jobs but brings renew hope to the future of the mineral sand mining company.
The mining landscape in Sierra Leone have had many challenges in the last decade which was down to the volatility of the commodity market and the inability to absorbed shock driven by the many global activities.
The takeover of Sierra Rutile Limited by PRM under the leadership of Craig Dean has been a welcome news by many in the mining and investment community both in and outside of Sierra Leone. His track record of running a successful trading company and the backing from Gerald Group the parent company cannot be over emphasised.
When he took over Marampa Mines Limited just over 3 years ago he focused on differentiation strategy. He secured and invested in the technology and personnel to produced a high grade Iron Ore product referred to as Marampa Blue from Lunsar. This product is amongst the best and highest grade in the world therefore showcasing Sierra Leone as hub for quality Iron Ore.
The level of investment Gerald Group had made to date at the Marampa Mines Limited is in excess of $300m all from equity.
Only serious investor with vested interest and trust for the people of Sierra Leone can convince his Board to approve such amount.
His track record in Sierra Leone in the last three years includes payment of over $40m to date to the Government of Sierra Leone through royalties, PAYE etc.
A record setting CDA payment.
Over 2000 jobs created whilst pushing government agenda in having over 30% of the workforce being women.
Having credible takeovers from companies like Gerald Group will only increase investor’s confidence and attract Foreign Direct Investment from similar players that will benefit Sierra Leone.
With their track record and every indication this takeover by PRM, there is hope for the future of Sierra Rutile Limited.
