Buildmax: Vaal Quarry purchase terms fulfilled

All conditions applicable to Buildmax’s acquisition of the assets and liabilities of Vaal Quarry, including the applicable mining right, had been fulfilled, the listed opencast mining contractor and building materials supplier reported on Friday. In December last year Buildmax said it had agreed to acquire Vaal Quarry’s aggregate and gravel mining rights, and certain plant and equipment for R20.66 million. The acquisition was by a special purpose vehicle in which Buildmax had a 74 percent interest with the balance held by the executive director, Jackie Mathebula, through Harmoserve. The company said that operations had commenced at the quarry on the back of strong aggregate demand for the construction of road infrastructure in the vicinity. In December, Buildmax said its board believed it represented a well-priced chance for Buildmax Aggregates and Quarries to grow its footprint in the buoyant market in Vaal Quarry’s immediate surroundings. It added that the deal gave Buildmax Aggregates and Quarries access to high-grade gravel and aggregate reserves and resources that were well situated to access new contracts and markets. The shares fell 0.49 percent to close at R2.05 on Friday. – Roy Cokayne