Benny Steinmetz Group Resources Ltd. (BSGR) subsidiary Bateman Engineering NV (AIM:BTE) has signed a term sheet for the acquisition of the Biox technology business from South Africa's Gold Fields Group Ltd. (JSE; NYSE: GFI) for $8.84 million in cash. Bateman is also acquiring Swiss-registered Biomin Technologies SA, which owns the relevant intellectual property, patents and trademarks, and most of the license agreements. It expects to close the deal in November.
Biox owns proprietary and patented technology, known as the biox process, for the pre-treatment of refractory ores and concentrates ahead of conventional cyanide leach for gold recovery. The biox process has many advantages over conventional refractory processes such as roasting, pressure oxidation and nitric acid leaching, including include improved rates of gold recovery, lower capital cost, low operating expenditures, low levels of skills required for operation, and being environmentally friendly.
Bateman is also acquiring a second technology - ASTER (Activated Sludge Tailings Effluent Remediation) - which is under development, for the efficient removal of thiocyanate and cyanide from leach solutions. The technology is being tested in a number of pilot plants and if commercially viable, could be applied to many conventional gold processing plants worldwide.
Bateman reports that the biox business posted an operating profit of $45,000 on $907,000 revenue in the fiscal year through June 2008. The business will be incorporated into the Bateman Engineering Projects Strategic Business Unit.
Bateman Engineering CEO Eddie du Rand said, “The Biox acquisition is a major stride towards Bateman becoming a technology company and is in line with our strategic focus on Centers of Excellence."
Bateman Engineering rose 2.6% today to ₤0.785, giving a market cap of ₤34 million. The share has fallen 77% since January.
Published by Globes [online], Israel business news - www.globes-online.com - on October 2, 2008
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