Bulgarian mining and processing company Kaolin has signed a deal to buy 51% of a Ukrainian quartz mine for an undisclosed sum, the company said on 14 June 2007.
The Ukrainian quartz mine made a profi…
Bulgarian mining and processing company Kaolin has signed a deal to buy 51% of a Ukrainian quartz mine for an undisclosed sum, the company said on 14 June 2007. The Ukrainian quartz mine made a profit of EUR 450,000 (USD 600,000) for 2006, Kaolin said in a statement. The capital of the Ukrainian mine will be increased after the deal is finalised and the funds raised will be used to build a silica sand plant, Kaolin said without giving details. Kaolin supervisory board chairman Konstantin Nenov has said the purchase of the Ukrainian quartz mine was part of the company“s strategy for a broader expansion in the Black Sea region and the former Soviet republics. Kaolin sold 4.58 million shares at BGL 13.50 (USD 9.18/EUR 6.90) each in an initial public offering in April 2007. It will use the funds to finance new acquisitions and investments in the Balkans and elsewhere in eastern Europe. The company“s 1Q 2007 net profit more than quadrupled to BGL 5.5 million, as sales jumped 51%. The company expects its sales to grow by 20% or 30% in 2007. Kaolin, majority owned by Bulgaria“s Alfa Finance Holding, is the sole producer of kaolin and silica sands in Bulgaria. It operates 12 mineral deposits and eight processing factories in Bulgaria, and five deposits and two plants in Bulgaria“s western neighbour, Serbia. It also has a subsidiary in neighbouring Romania.