XRF Scientific Limited is to buy the fusion flux and platinum manufacturing businesses from the Sigma Group, it has been revealed.

A binding agreement has been signed which will see the Sigma Group subsidiary transfer to XRF in a deal worth A$7 million in cash and shares.

According to XRF Managing Director Terry Sweet, both the flux and platinum sides of the business offer a "natural fit" with XRF's existing operations.

"It is well documented that XRF has been pursuing acquisition opportunities over the past two years," he commented.

"The expanded revenue base will allow XRF to provide better and more comprehensive services to all clients with more resources dedicated to research and production of value-added products."

The deal will be funded through cash reserves, ongoing cash flows and the placement of A$0.75 million of convertible notes to sophisticated investors.

XRF technology is used in the measurement of material composition and purity, with clients including BHP Billiton, Rio Tinto, Iluka Resources, Xstrata, Alco and Intertek.

Source:



XRF $7m Acquisition of Sigma Flux & Precious Metals (30/07/10)

© Adfero Ltd