By Jaime Llinares Taboada and Anthony O. Goriainoff


Sibanye-Stillwater Ltd. said Wednesday that it has rejected a compensation claim brought by 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 earlier Wednesday that it is seeking compensation for what it said was the South African mining company's failure to close the deal.

Sibanye-Stillwater said that it rejects the claim, and that Appian's public characterization of the event experienced at Santa Rita mine in Brazil was superficial and wrong. According to the company, Appian's public statements were an apparent effort to disrupt the announcement of its results, and to engage in litigation via the media.

"As Appian is aware, disputes arising from recent events are to be resolved by the English High Court. If Appian decides to commence proceedings, we shall vigorously defend our position and are confident that we will prevail," the company said.

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; and Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com


(END) Dow Jones Newswires

03-02-22 1201ET