American Acquisition Opportunity Inc.’s (NASDAQ:AMAO) merger target company, Royalty Management Corporation (RMC), a sustainably driven, cash flow-oriented, royalty investment and development company, announced today that it has expanded its stake in one of its portfolio holdings, Ferrox Holdings Ltd. (“Ferrox”) through a common stock issuance; issuing stock in Royalty Management Corporation for approximately 10% of Ferrox. The common stock issued by Royalty Management Corporation for its investment in Ferrox is valued at $10.00 per share equivalent of American Acquisition Opportunity’s stock post the pending merger.
Tom Sauve, Chief Executive Officer of Royalty Management Corporation, commented, “Ferrox is an exciting business with a strong management team that has showcased excellent execution on an amazing opportunity since our initial investments earlier this year. When the possibility was presented for RMC to increase its ownership of common stock in the company for shares of RMC, we believe it made great sense for both parties and their shareholders. With this expanded investment, we are able to gain further upside in Ferrox, while at the same time, offering its long-term shareholders upside through our future public presence in the United States. We look forward to continuing to help Ferrox grow its business through execution that will generate value for all of its stakeholders, including the local communities in South Africa by paying good wages and utilizing safe, modern-day operating practices.”
Ferrox has completed substantial onsite development to commence operations. Additional details of the operation are:
Incorporated in 2006, Ferrox Holdings Ltd. is a British Virgin Island company currently developing the mining and production of titanium, iron and vanadium products, through its world-class titanium ilmenite ore deposits in South Africa.
Ferrox owns the Tivani Mining Deposit, its flagship asset, with significant existing work and development done to-date, located in the mining-friendly Limpopo Province of South Africa.
The Tivani Project is favorably located in an area well known for its mining and smelting operations, and is 338 km from Johannesburg, 416 km from the nearest deep-water port, which is in Maputo (Mozambique).
Extensive preparation work, studies and development have been completed by the Ferrox team, with over USD 65 million already invested in the development work of the asset, including on the geology, mine planning, mineral processing alternatives, potential product sales, corporate social responsibility with the local communities and the legal licensing aspects in a South Africa context.
Product capabilities are:
Titanium products, including Ilmenite Concentrate, Titanium Metal, Titanium Dioxide, and Ferro Titanium;
Vanadium products, including Vanadium Pentoxide and Ferro Vanadium; and
Iron products, including run-of-mine ores, magnetite concentrate, and pig iron.
Royalty Management Corporation continues to seek other similar investment and development opportunities from a variety of industries, with a particular focus on those that are emerging or transitionary, as the company builds a diverse portfolio of royalties, rents, and revenue shares across a variety of industries.
About Ferrox Holdings Ltd.
Ferrox Holdings is majority owner of Tivani Project; ilmenite (TiO2), iron, vanadium (V2O5) and phosphate project which is in an advance development stage. It is located in long term mining region of the Limpopo Province in South Africa. Founded in the British Virgin Islands (BVI), Ferrox is the holding company for several South African subsidiaries including Tivani (Pty) Limited (Tivani), Tzaneen Mining Project (Pty) Limited (Tzaneen) and Titanium Mining (Pty) Limited (Titanium). The company focus is on Sub Saharan Africa, a continent rich in mineral resources. Ferrox is fully compliant with South African black economic empowerment legislation. The Tivani project is 26% owned by Red River Exploration and Mining (Pty) Limited (the BEE compliant vehicle) while Ferrox, through Tivani holds a 64% interest.
About American Acquisition Opportunity Inc. (NASDAQ:AMAO)
American Acquisition Opportunity Inc. is a special purpose acquisition company formed for the purpose of effecting a merger, stock purchase or similar business combination with one or more businesses. While the Company is able to evaluate opportunities in many sectors, it intends to focus its search on land and resource holding companies. The Company’s units, common stock and warrants are listed on the Nasdaq Capital Market.
About Royalty Management Corporation
Royalty Management Corporation is an innovative royalty company focused on building shareholder value by acquiring, developing, or investing in near-term income producing assets that can provide the company with accretive cash flow from which it can reinvest in new assets or expand cash flow from existing controlled assets. The model is to acquire and structure cash flow streams around a variety of assets, typically within natural resources (including real estate), patents, and intellectual property, that can result in monetizing these cash flow streams while identifying other future transitionary cash flows.
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