Sibanye Stillwater Limited (JSE:SSW) signed a definitive agreement to acquire Mineracao Vale Verde Ltda from affiliates of funds advised by Appian Capital Advisory LLP on October 26, 2021. Sibanye Stillwater Limited will acquire the shares and Appian group loans against the Mineracao Vale Verde Ltda. The transaction will be funded from internal reserves.

In related transaction, Sibanye Stillwater Limited also signed a definitive agreement to acquire Santa Rita nickel mine. The combined transaction price is $1 billion and a 5% net smelter return royalty over potential future underground production. $1 billion, the upfront purchase price will be settled in cash on closing.

The upfront purchase price is subject to customary adjustments for net debt and working capital on implementation of the transaction. The entire workforce of Mineracao Vale Verde Ltda will transfer to Sibanye. The transaction is subject to and conditional on the fulfilment of conditions precedent customary for a transaction of this nature, including approval of the Financial Surveillance Department of the South African Reserve Bank.

The transaction is conditional upon acquisition of Santa Rita nickel mine. The transaction does not require shareholder approval. The transaction is expected to be completed in the fourth quarter of 2021 and is expected to be immediately accretive to Sibanye-Stillwater's cash flow and earnings.

Moelis & Company LLC acted as the financial advisor, Clifford Chance LLP, Machado, Meyer, Sendacz e Opice and Cliffe Dekker Hofmeyr acted as legal advisors to Sibanye Stillwater Limited. Royal Bank of Canada (TSX:RY), Bank of Montreal (TSX:BMO), Citigroup Inc. (NYSE:C) and Standard Chartered PLC (LSE:STAN) acted as financial advisors, McCarthy Tétrault LLP acted as legal advisor and Ernst & Young LLP (UK) acted as accountant to Appian Capital Advisory LLP. Darin Renton of Stikeman & Elliot and Pedro Garcia of Veirano Advogados acted as the legal advisors to RBC and BMO.