Chromex Mining soars following 35p per share approach for company

Shares in AIM’s only pure-play chrome mining company, Chromex Mining (LON:CHX)surged this morning, rising over 38%, after the company confirmed press speculation that it has received a preliminary approach, which may or may not lead to an offer for the company, at 35p per share. Details of the potential acquirer were not disclosed.

On the London Stock Exchange Chromex shares were changing hands at 27.75p in late morning trade, up 38,8% from yesterday's close.

The company said that its announcement has not been made with “ the agreement or approval of the potential offeror and there can be no certainty  that an offer will be made nor as to the terms on which any offer might be made”.
Chromex is a dedicated chrome company established to acquire, control and develop chromite mining and processing facilities.  It currently has two key mining assets located on the Bushveld Complex, which between them have total resources of approximately 41 million tonnes of chromite.   The Mecklenburg mine lies in the east and the Stellite mine in the west. Both are owned and operated by South African registered Chromex Mining Co, which is 74 percent owned by Chromex and 26 percent owned by their Black Economic Empowerment (BEE) partner Umnotho WeSizwe.

In its recent interim statement, at the end of June, Chromex said that turbulence in the chrome market appears to have abated, and forecast demand is again strong.