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Highlights
- SSH Group (SSH) announces strategic move to acquire Total Contract Mining.
- The acquisition is aimed at enhancing SSH's production capabilities in the resources sector.
- Finalization of the deal is expected within four weeks, post due diligence.
SSH Group (ASX:SSH), a prominent provider of mining services, has recently announced its plans to acquire Total Contract Mining, a company known for its innovative approach to early-stage production of mineral assets. This acquisition aligns with SSH's strategic goals to enhance its service offerings and strengthen its foothold in the Australian resources industry.
Total Contract Mining has established itself as a pivotal player in the ASX industrial stocks market by enabling rapid production for mineral asset owners, thereby enhancing their financial outcomes through cost-effective and efficient solutions. The integration of Total Contract Mining’s expertise is expected to significantly bolster SSH's capabilities across various phases of mining operations, including workforce management and production.
The acquisition is contingent upon several conditions, including due diligence, the agreement on employment terms, and board approvals. The non-binding nature of the current term sheet allows for thorough evaluation and negotiation before a definitive agreement is signed. SSH and Total Contract Mining anticipate that the due diligence will be completed within the next four weeks, with the final agreement to follow shortly.
During the exclusive negotiation period, Total Contract Mining will not engage with other parties, focusing entirely on the potential integration with SSH. This period will also involve a detailed review of Total Contract Mining’s ongoing projects and future opportunities, although the financial terms of the acquisition have not yet been disclosed.
Post-acquisition, Kevin Malaxos and Sam Baker, two key executives from Total Contract Mining, are set to join the SSH team. Malaxos, with over 35 years of experience in the resources sector, will be appointed as a non-executive director. His extensive background in managing operations across various minerals will be invaluable to SSH. On the other hand, Baker, the founder and managing director of Total Contract Mining, will assume a critical role in merging the operations of the two companies. His expertise as a mining engineer will be crucial in maximizing the synergy between SSH’s existing services and Total Contract Mining’s specialized capabilities.
This strategic acquisition not only promises to expand SSH's service range but also positions it for potential substantial growth in the highly competitive Australian resources sector. The move is seen as a significant step in SSH's ongoing strategy to diversify its mining services and enhance its market presence.
