Amigo Resources to Buy South African Mineral Sands Project for $33 Million in Reverse Takeover Deal

05:04 AM EDT, 09/28/2026 (MT Newswires) -- Amigo Resources (AMGO.L) subsidiary Rare Earths Development signed a share purchase agreement to acquire the Kamiesberg mineral sands project in South Africa by buying 100% of Zirco Resources and Cyndara 14, according to a Monday release. The purchase price is $33 million on a working capital-adjusted, cash-free and debt-free basis. The project holds more than 2.71 billion tonnes of JORC resource, including 0.48 billion tonnes of measured resource, which Amigo said would deliver a step change in its resources. If completed, the deal would constitute a reverse takeover. Upon completion of the deal, UK-listed mining company intends to own 51% of Rare Earths Development, which will hold the project, and to be appointed as its manager and operator. Amigo plans to fund the purchase price and development costs from internal sources and by raising debt or equity in the subsidiary. It is targeting completion on or before Jan. 31, 2027.