Mineral sands company, Iluka Resources Ltd
(ASX:ILU), has confirmed that its merger with rival company, Sierra Rutile Ltd, is now complete.
Iluka says the transaction cost of this merger was $393 million, and that it will repay Sierra Rutile’s net debt, which totals $80 million.
The merger proceeded after the company saw the results of a geotechnical audit which found Sierra Rutile’s tailings dams in Sierra Leone only had a “low” risk of failure.
Iluka is also planning to invest more than $290 million to ramp up production, streamline operations and improve safety at the Sierra Leone mine.
Iluka posted a net loss of $20.9 million at 30 June 2016.
