PRM’s acquisition of Sierra Rutile, with a bid of $40 million, brought renewed hope to hundreds of Sierra Leonean staff who are on the verge of being redundant at the oldest mining company in Sierra Leone.
Prior to the takeover, Sierra Rutile had suspended mining activities, leading to job losses among mostly Sierra Leonean employees.
PRM’s 11.46% interest and voting rights already held in Sierra Rutile Limited, that was founded in 1971 by US-based steel company Armco and Nord Resources, will further solidify the acquisition.
The announcement of the takeover on Wednesday, March 20, 2024, triggered a 34% increase in share price, signaling positivity in the global financial markets for this acquisition.
PRM, led by Gerald Group CEO Craig Dean, operates globally with a focus on critical metals and minerals, actively investing in Africa, including Sierra Leone. The mining landscape in Sierra Leone has faced numerous challenges in the past decade, primarily due to commodity market volatility and a lack of external financing. However, PRM’s acquisition is seen as a positive development by both local and international mining and investment communities.
Dean’s successful track record in Sierra Leone includes the transformation of Marampa Mines Limited into a producer of high-grade iron ore known as Marampa Blue, positioning Sierra Leone as a hub for quality iron ore. Gerald Group’s investment in Marampa Mines exceeds $300 million, solely from equity, reflecting a commitment to the country’s economic development. Additionally, Dean’s contributions to the government through royalties, taxes, and job creation, including a significant female workforce, highlight his dedication to the local community.
The acquisition by PRM not only boosts investor confidence but also attracts foreign direct investment, promising a brighter future for Sierra Rutile Limited and the mining sector in Sierra Leone.
