Chrome sells African interest for $41m

Subiaco-based Chrome Corporation Ltd has decided to move on with the sale of its 74 per cent interest in a South African chrome project for $41 million, a week after it decided not to proceed with a $51 million sale.

Chrome shareholders yesterday voted to proceed with a conditional agreement with AMCOL International Corporation to sell the company's interest in the Ruighoek project.

The sale price equates to 28.6 cents per fully paid ordinary Chrome share, which after the repayment of a $US6 million loan from AMCOL, represented a value of between 21-22c per Chrome share.

The news follows an announcement made last week that Chrome decided not to proceed with an unsolicited offer from Medway Finance Ltd to purchase the interest for $51 million. Chrome also announced that other interested parties which had informally approached it have also decided not to proceed.

A settlement date for the AMCOL transaction is dependent on statutory approvals required from regulatory bodies in South African.