Mining services provider SSH Group (ASX:SSH) has entered a non-binding term sheet for the potential acquisition of Total Contract Mining (TCM).
Total Contract Mining specialises in identifying mineral assets and presenting their owners with approaches to early-stage production. The company’s focus is on delivering rapid production parcels that enhance clients’ financial positions through efficiency and cost-effective solutions.
SSH says this development aligns with its strategy to rapidly grow its mining services capabilities and strengthens its position in the Australian resources sector.
The acquisition — subject to completing due diligence, employment agreements, and board approvals — will strengthen SSH’s mining services capabilities through expanding its vertical from workforce through to production capabilities.
SSH Managing Director Daniel Cowley-Cooper says signing this agreement represents a significant step in the company’s strategy to grow its mining services division.
“This opportunity, combined with our recent progress in securing key agreements and advancing discussions in the sector, positions SSH Group for potential substantial growth in the Australian resources industry,” Cowley-Cooper says.
This term sheet is non-binding and subject to further due diligence, negotiation, and execution of definitive agreements. SSH and TCM anticipate that due diligence will be finalised, and the agreement executed, within four weeks from signing the non-binding term sheet.
During this period, TCM will exclusively deal with SSH and will not engage in discussions or agreements with any other party. During the due diligence phase, SSH will review and analyse TCM’s current workbook of mining projects and pipeline of opportunities it has shortlisted. The value and considerations for the proposed acquisition are not yet known, and will be agreed upon during the due diligence process.
Once the transaction is completed, two executives from TCM, Kevin Malaxos and Sam Baker, will join SSH.
Malaxos, who will be appointed non-executive director, brings more than 35 years of experience in the resources sector, holding senior management and executive roles across gold, nickel, iron ore, silver, lead, and zinc.
TCM Founder and Managing Director, Sam Baker is a dual-qualified mining engineer with over 12 years of operational experience in the Australian resources sector.
Baker will play a pivotal role in integrating TCM into SSH, leveraging the established business platform to expedite the expansion of SSH’s mining services.
SSH Group has a portfolio of industrial service businesses focused on service delivery to the Australian mining, civil, and construction industries.
Write to Aaliyah Rogan at Mining.com.au
Images: SSH Group
