Palm Chrome Holdings Proprietary Limited, Black Chrome Holdings Proprietary Limited and Sail Minerals Proprietary Limited and Chrometco Limited entered into an agreement to acquire Chrometco Limited (JSE:CMO) from Richmount Invest Limited and others in a reverse merger transaction on August 24, 2016. Under the terms of the deal, Chrometco will issue 200 million shares to acquire 51% stake in Palm Chrome and 2.2 billion shares to acquire 51% stake in Black Chrome and 25% stake in Sail Minerals. The Black Chrome and Palm Chrome assets are being acquired by Chrometco as assets that are fully funded by Sail and therefore will not require shareholder funding. Chrometco has entered into the share subscription agreement with Sail Minerals in terms of which K2016291369 (South Africa) will subscribe for a total of 62.5 million Chrometco ordinary shares for a cash consideration of ZAR 5 million. Also, Chrometco has entered into a loan facility agreement whereby Sail will provide a facility of up to ZAR 10 million to Chrometco. Post completion, Grand Slam will own 90% stake in Chrometco. The deal is subject to Chrometco concluding a due diligence on Palm Chrome and Black Chrome, receipt of the written consent from the Minister of Resources, the approval by Chrometco’s shareholders of the issue of shares to K2016291369 (South Africa), the approval by the Chrometco’s shareholders of the waiver of the requirement for K2016291369 (South Africa) to make a mandatory offer, the approval by the Chrometco’s shareholders of the amendment to the Chrometco’s MOI to increase the authorised share capital of the Chrometco to such number that is sufficient to enable Chrometco to issue the required shares to K2016291369, the filing of the abovementioned amendment to the Chrometco MOI with CIPC so as to give effect to the amendment, the approval of the Palm Chrome and Black Chrome acquisition by Chrometco shareholders in terms of the Listings Requirements of the JSE, the approval of the competition authorities and all other regulatory approvals as may be required. The Board of Chrometco is in favour of and has approved the transaction. As of November 7, 2016, the due diligence process undertaken by Chrometco was completed with a satisfactory outcome. A general meeting of the shareholders of Chrometco will be held on July 18, 2017. As of July 18, 2017, the shareholders of Chrometco approved the transaction. As of September 30, 2016, Sail Minerals granted a standby loan facility to Chrometco to the amount of ZAR 10 million. As of July 24, 2017, application was made for the listing of 62.5 million shares in terms of the specific issue of shares and an additional 835 million shares in terms of the first tranche of the agreement. As of August 1, 2017, Chrometco obtained control over Sail Minerals, increasing its stake in Sail Minerals to 51%. Nick Lazanakis of BDO Corporate Finance acted as Independent expert for Chrometco while Mazars acted as accountant. Andrew Pitt of Moore Stephens Cape Town Inc. acted as accountant for Palm Chrome Holdings Proprietary Limited, Black Chrome Holdings Proprietary Limited and Sail Minerals Proprietary Limited while Mineral Valuation Group Proprietary Limited acted as independent valuer. Computershare Investor Services Proprietary Limited acted as transfer secretaries. PSG Capital (Pty) Limited acted as financial advisor to Chrometco.