Rayrock, which already holds a 35% stake in Western Ag, is buying the remaining interest of New York- based investment banker Warburg Pincus Capital Partners. The transaction is scheduled to close Jan 31.
With headquarters in Houston and mines in Carlsbad, N.M., Western AG, processes and markets internationally a refined langbeinite fruit crop fertilizer known as K-Mag.
The company recently acquired an ammonium sulphate plant in Gary, Ind. and is said to be evaluating additional expansion opportunities in the fertilizer and industrial minerals sector.
Western Ag’s annual sales for 1989 are forecast at around $30 million.
“The acquisition will provide Rayrock with a substantial base of profits and cash flow in addition to its precious metals business,” said President David Crombie.
“It’s a business we know very well, having been operator for the past three years,” he said.
According to Rayrock the mine, which was regarded as a turnaround situation in 1985, has over 30 years of reserves in place. In 1987, Rayrock’s share of production from three open pit gold mines in Nevada added up to 35,940 oz.
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