- Mining-tech company Imdex (IMD) has purchased AusSpec International for $8.5 million
- The deal will close the gap and will enhance the company’s technology to conquer all four rock knowledge components – location, texture, grade and mineralogy
- With AusSpecs platform, the company can now satisfy the fourth component, mineralogy, to its clients
- On market close, Imdex is up 0.90 per cent and is trading for $1.12 per share
Mining-tech company Imdex (IMD) has purchased AusSpec International for $8.5 million.
The purchase will be split up into $3 million cash and $5.5 million worth of Imdex shares.
The deal will enhance Imdex’s rock knowledge and offering to clients and complements its technology offering with the potential to expand.
“AusSpec is a strong strategic fit for Imdex that is consistent with Imdex’s acquisition and development strategies,” Imdex CEO Paul House said.
“The acquisition provides a compelling opportunity to build on our total rock knowledge offering for clients – from the rig to the core farm and the mill,” he added.
AusSpec was founded in 2013 and is an industry leader in automated mineralogy from infrared scanners and hand-held spectrometer in the field. It has a unique platform aiSIRIS, which is an artificial intelligence spectral infraRed interpretation system.
aiSIRIS is a unique low-touch Software-as-a-Service (SaaS) product with high barriers to entry. The product delivers premium gross margins that are consistent with Imdex’s strategy. The platform complements Imdex’s existing in-field GeoAnalysis solution.
“Every mine in the world makes decisions on the four components of rock knowledge – location, texture, grade and mineralogy. Our technology stack currently addresses three of these components and aiSIRIS satisfies the fourth – mineralogy,” Paul explained.
“In line with our value proposition, aiSIRIS also enables the timely delivery of critical data. This allows real-time decisions to be made, rather than having to wait weeks or months,” he added.
The consideration for the acquisition of 100 per cent of AusSpec shares will be satisfied by three cash payments of $1 million, together with $5.5 million in Imdex shares. A total of $5 million worth of Imdex shares will be issued on completion and the balance in July 2022.
Shares will be issued at the volume-weighed average price of each ordinary Imdex share, as traded on the ASX ten days prior to the calculation date.
Imdex will fund the cash considerations from its existing cashflow.
On market close, Imdex is up 0.90 per cent and is trading for $1.12 per share.