8 DISPOSAL GROUPS HELD-FOR-SALE
 

On 17 November 2017, Assore, which owns 100% of the issued shares in Zeerust Chrome Mines Limited (Zeerust), entered into a sale of shares agreement. In terms of the agreement, Assore has agreed to sell all of its shares in Zeerust, with the transaction being contingent on certain suspensive conditions being met by 31 December 2018, the most significant of which is the consent required, in terms of the Mineral Resources and Petroleum Development Act, by the Department of Mineral Resources (DMR) for the transfer of the mining right from Zeerust (the section 11 transfer). The purchase consideration will be determined by reference to the preceding 12 month average price of chrome ore determined from the date all suspensive conditions for the transaction have been fulfilled.

On 6 February 2018, Rustenburg Minerals Development Company Proprietary Limited (Rustenburg Minerals), in which the group has a 56% interest entered into a sale of business agreement. In terms of the agreement, Rustenburg Minerals agreed to sell its chrome mining business, comprising the assets and liabilities required for the income-earning activity of the chrome mining business. At year-end the sale was contingent upon certain suspensive conditions being met, with the purchase price being agreed at nominal value, payable to Rustenburg Minerals, for the transfer of its assets and liabilities. The agreement specifically excludes any contingent liabilities arising after the effective date, 1 October 2018, of the transaction.

Management regarded the net asset value to be disposed of as disposal groups.

These identified disposal groups comprised the following assets and liabilities at 30 June 2018.

      Rustenburg
R’000		 Zeerust
R’000		 Total
R’000		  
Assets held-for-sale as part of identified disposal groups:            
– inventories     545 6 551  
– trade and other receivables     259 190 449  
– cash resources     273 78 351  
          1 351  
Liabilities associated with assets held-for-sale:            
– long–term provisions     9 950 1 607 11 557  
– trade and other payables     4 293 1 033 5 326  
– short-term provisions     251 40 291  
          17 174  

On 1 October 2018, all suspensive conditions for the sale of the business of Rustenburg Minerals had been met. The suspensive conditions for the sale of Zeerust have not been met as yet. The asset value of these operations have accordingly been disclosed as disposal groups held-for-sale in accordance with IFRS 5: Non-current assets held-for-sale, and discontinued operations.