By Jaime Llinares Taboada


Sibanye-Stillwater Ltd. has been served with a notice of a compensation claim from funds sponsored by Appian Capital Advisory LLP regarding the termination of the acquisition of two mines in Brazil.

Appian, which advises the funds that own the mines, said Wednesday that it is seeking compensation for what it said was the South African mining company's failure to close the deal.

In October, Sibanye agreed to buy the Santa Rita nickel mine and the Serrote copper mine in Brazil for $1 billion in cash and a royalty valued at $218 million. However, in January the company said it had decided to terminate the deal after a geotechnical event occurred at Santa Rita which was deemed to be material and adverse to the site.

Appian said Wednesday that this characterization was false, damaging and defamatory, and that the event had little impact on the productivity of the mine.

"Appian believes that, in reality, Sibanye intentionally chose to breach its obligations for commercial reasons alone. Appian intends to rigorously enforce its legal rights and pursue Sibanye for all damages and losses incurred," the investment advisor said.


Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT


(END) Dow Jones Newswires

03-02-22 0512ET