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Sibanye, New Century takeover still on despite mine suspension

New Century

Sibanye-Stillwater has stepped in to help New Century get back on its feet after heavy rainfall forced the suspension of its Century mine in north-west Queensland.

Residents in the area were forced to evacuate earlier this month as the state experienced unprecedented heavy rainfall.

The rain cut off access to Century by road, impacting deliveries to site of production consumables and New Century is actively working with the Burke Shire to understand road conditions and opportunities for the reopening of road networks as they become available.

According to the company, recovery efforts are progressing well, however production and non-essential activities remain suspended while dewatering operations continue.

Production is likely to be at a standstill for another two to three weeks.

New Century is engaging with controlling shareholder Sibanye to mitigate key operational and business risks, including short term liquidity issues.

Sibanye Australia has confirmed that it intends to keep its takeover offer open, which New Century advised its shareholders to accept on March 9.

Sibanye cited changes in strategic direction and a decline in shareholder value as the reason for its takeover bid of $1.10 cash per share.

“We will continue to advocate for change in the current strategic direction of New Century,” the company said in a statement announcing its bid.

“Sibanye has also recently become aware that a number of shareholders in New Century may be looking to dispose of their holdings on market.

“Sibanye has been concerned about the change in strategic direction of New Century under current management, with the building of a tailings asset management service business no longer a focus.”

The New Century board is still urging its remaining shareholders to accept the offer, with the Century suspension likely to impact production results for the current quarter.

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