Existing shareholders of Al Masane Al Kobra Mining Co entered into a definitive agreement to acquire an unknown stake in Al Masane Al Kobra Mining Co from Trecora Resources (NYSE:TREC) on September 22, 2019. In a related transaction, Trecora has also agreed to sell substantially all of its stake in Al Masane to Al Masane. The aggregate gross purchase price is approximately $70 million. On March 23, 2020, the parties entered into an amendment agreement and completed the first closing by sale of 4,000,000 shares for aggregate gross proceeds of $10.7 million. The transaction will be completed in multiple closings. The purchasers have advanced 5% of the purchase price (or approximately $3.5 million) in the form of a non-refundable deposit, which deposit was a condition to the effectiveness of the agreement. For year ended December 31, 2018, Al Masane Al Kobra Mining Co recorded total shareholder's equity of SAR 607 million ($161.8 million). On August 17, 2020, Trecora completed the sale of an additional aggregate 5,779,556 shares of Al Masane Al Kobra Mining Co for $15.4 million. After this sale Trecora further reduced its equity ownership interest in Al Masane Al Kobra Mining Co from 27.0% to 21.3%. After the transaction Trecora's ownership will be reduced from 21.3% to 0.7%. As of September 15, 2020, Trecora received proceeds of approximately $39.7 million.

On September 28, 2020 Trecora Resources completed the Final Closing, which was with respect to an aggregate of 15,712,866 ordinary shares in AMAK to several Purchasers, for an aggregate purchase price of SAR 157 million (approximately US$41.8 million). The purchase price reflected SAR 149 million (approximately US$39.7 million) which was received previously, additional payments from the remaining Purchasers in the amount of SAR 4 million (approximately US$1.1 million) and 50% deposit previously paid to Trecora Resources related to the purchase of certain of the ordinary shares. As of September 28, 2020 Trecora Resource nominees to the board of directors of AMAK resigned effective upon completion of the Final Closing as required by the Purchase Agreement.

The transaction is subject to certain governmental approvals, Ministry of Industry and Mineral Resources in Saudi Arabia and other customary closing conditions. The Ministry of Industry and Mineral Resources in Saudi Arabia approved the transaction recently. The transaction is expected to close in the fourth quarter of 2019. As of January 21, 2020, date for the closing of the transaction has been extended to March 31, 2020. As of March 27, 2020, the closing of the transaction has been extended to September 28, 2020. Trecora expects to receive net proceeds of approximately $60 million in cash, net of both US and Saudi taxes, as well as transaction expenses. Additionally, Trecora will explore options to use remaining proceeds to fund share repurchases, targeted growth opportunities as well as general corporate purposes.

Citi acted as financial advisor and Baker & McKenzie LLP acted as the legal advisor to Trecora. Mamdouh Al Majed & Faisal Al-Enzi audited the balance sheets of Al Masane Al Kobra Mining Co.