Mercury Recycling acquired in £1.5m deal
MERCURY Recycling, the Manchester-based recycler of lighting tubes and street lamps, has been bought in a £1.5m cash deal.
The business, which has a stock market listing, was the subject of a reverse takeover last year by a iron ore company with mining rights in Africa.
It renamed the listed company as Ironveld and has focused its attention on its mining interests.
Today it said the sale was in line with the board’s strategy to focus resources on a pig iron and vanadium project in the Limpopo province of South Africa.
The Mercury business has been acquired by a newly formed company called Environmental Safeguard. In the 12 months to December 31 Mercury had revenues of around £2.1m and a loss before tax of approximately £25,000. Its net assets at June 30 were approximately £1.3m.
Ironveld’s chairman Giles Clarke said: “We are very pleased to have agreed the sale of our recycling business. It was no longer a key area of our activities and we will be investing the sale proceeds into the group’s pig iron and vanadium project as we work towards the definitive feasibility study for the first stage of the project.”
Ironveld was advised by Manchester law firm Kuits and Stockport accountant Hurst.
