Metarock offloads mining services firm

Metarock Group (ASX:MYE) has entered into a binding agreement to sell its 100% interest in underground mining services company PYBAR to Thiess for $65 million. 

Grant Samuel is acting as Metarock’s financial advisor, while Corrs Chambers Westgarth is its legal advisor. Thiess is being advised by Squire Patton Boggs as legal advisor.

The $58.23 million market capitalisation company says the cash proceeds, which is expected to be about $36.3 million, after deducting PYBAR’s outstanding debt and transaction costs, will materially ‘strengthen’ Metarock’s balance sheet. The company says it will also provide a platform for the company to capitalise on the ‘significant’ growth pipeline across its remaining business units, namely Mastermyne, Wilson Mining, and MyneSight. 

Executive Chairman Jon Romcke says the purchase consideration represents a ‘compelling’ value for PYBAR, which will continue to grow as part of Thiess’ global mining services platform. 

“The transaction significantly strengthens Metarock’s balance sheet and is expected to return the company to a net cash position, allowing it to focus on the Mastermyne, Wilson Mining, and MyneSight businesses. 

The transaction removes the remaining constraints over the company’s ability to pursue the significant growth opportunities in the pipeline and represents a further key milestone in the successful turnaround of the Metarock Group.” 

Metarock’s share price had increased 18.42% to $0.225 as of 11.30am AEDT today (18 March 2024). 

As part of the agreement, all PYBAR employees will transfer with the business, including the senior management team led by PYBAR Chief Executive Officer (CEO) James Glover. 

Post transaction, PYBAR will continue operating the business under the PYBAR brand and plans to retain employees in recognition of their integral and important role in the ongoing operations and Thiess’ planned investment in growing the underground hard-rock contracting business going forward. 

Subject to satisfying or wavering a number of conditions, the transaction is expected to be completed on 30 April 2024. 

Upon completing the transaction, Metalrock will comprise the Mastermyne business segment, which is a diversified underground mining services business across its brand, as well as Wilson Mining and MyneSight. 

Wilson Mining provides ground consolidation products and services to the hard rock and coal mining sectors, while MyneSight provides accredited training, mine induction services, and compliance management solutions to mine operators. 

Metarock Group is an Australian mining services group focused on providing a diverse range of services and products to underground operations across the country.

Write to Aaliyah Rogan at Mining.com.au   

Images: PYBAR
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.