Norin Mining Acquires Chemaf Resources Limited

Chemaf Resources Limited (CRL) made an agreement to sell its entire operations, including all subsidiaries, to a wholly-owned subsidiary of Norin Mining Limited (Norin Mining). This transaction marks the culmination of an extensive strategic review and a rigorous global search for investors that commenced in September 2023. Subject to meeting the necessary conditions, the Company anticipates finalizing the transaction by the fourth quarter of 2024.

The sale proceeds will enable the Company to fully settle its existing debts and meet all obligations to creditors. Moreover, the entry of Norin Mining as the new owner brings substantial financial resources and advanced technical capabilities. These assets are crucial for progressing with the expansion of the Etoile mine and the development of the Mutoshi project in the Democratic Republic of Congo (DRC). These initiatives are currently at an advanced stage and hold the potential to significantly enhance production capabilities, projecting an annual output of over 75,000 tonnes of copper and 20,000 tonnes of cobalt hydroxide.

Founded in 2001 by its Chairman, Shiraz Virji, Chemaf SA (Chemaf) has become a leading player in the DRC's copper and cobalt mining sector. Over the past two decades, Chemaf has achieved notable milestones, including the production of more than 300,000 tonnes of copper and 55,000 tonnes of cobalt hydroxide from its Etoile mine. Looking forward, Chemaf is focused on advancing its Etoile Phase 2 expansion and the construction of the Mutoshi mine. These projects are poised to significantly bolster production capacities and contribute positively to the local economy and stakeholders in the DRC.

Jeremy Meynert, Advisor to Chairman Shiraz Virji and the Chemaf Group, expressed satisfaction with the transaction with Norin Mining, following a competitive international auction. The deal ensures that CRL and Chemaf can fulfill their financial obligations to current lenders and creditors. Meynert highlighted Norin Mining's experience and dedication, emphasizing their capability to continue Shiraz Virji's legacy and advance the Etoile Phase 2 and Mutoshi projects.

Norin Mining Limited, the acquiring entity, boasts a robust portfolio of base metals projects across Africa. In the DRC specifically, Norin Mining currently operates two established projects, Comika and Lamikal. The company's strong operational track record and extensive experience in the mining sector underscore its capability to support and drive forward Chemaf's strategic initiatives. In 2023 alone, Norin Mining recorded substantial revenues of US$4.3 billion from its diverse mineral operations across the continent.

Shiraz Virji, Founder and Chairman of Chemaf, expressed deep appreciation to the Chemaf team for their dedicated service over more than two decades. Under his leadership, Chemaf has significantly contributed to the economic and social fabric of the DRC through job creation, community development initiatives, environmental stewardship, healthcare programs, and the payment of royalties and taxes. He underscored his pride in establishing Chemaf as a leading producer of copper and cobalt in the region. Virji expressed confidence in Norin Mining as the new owner, highlighting their capability to advance projects like Etoile Phase 2 and Mutoshi, which promise enduring benefits for the DRC.

Virji also extended gratitude to Norin Mining for their professionalism and commitment throughout the transaction process. Recognizing Norin Mining's strong track record in mining operations and development, particularly in the DRC, he expressed optimism about their ability to successfully bring Etoile Phase 2 and Mutoshi to fruition. Virji conveyed his best wishes to Norin Mining and expressed assurance that Chemaf, under their stewardship, will continue to play a pivotal role in the economic and social landscape of the DRC.