Ontario Limestone Quarries Acquired
TORONTO — Rogue Resources Inc. will acquire majority interest in two Ontario limestone quarries for supplying the North American hardscape market.
In a deal announced Aug. 12, Rogue will get full ownership of the Sperian Quarry near Orillia, Ont., and 85% of the Johnston Farm Quarry near Bobcaygeon, Ontario, in two deals worth CAN $1.55 million, plus other considerations with the co-owners of the Johnston Farm operations.
“Rogue has remained steadfast in its effort to find assets with high rock value, in a good jurisdiction and close to cash flow and these quarries are both great examples of checking each of those boxes. These acquisitions will be a direct result of this focus and will strengthen our project portfolio”, said Sean Samson, President and CEO of Rogue. “Also, acquiring a business with historical cash flow, for which we’ve been able to negotiate Purchase Orders, allows us to tap into sources of less dilutive financing.”
The deal is subject to Rogue’s completion of financing arrangements through Canadian financial markets.
The Speiran quarry can extract up to 20,000 metric tons under its mining permit, and sells an average of 2,722 metric tons annually in the hardscape market for cladding, steps and flagstone. The Johnston Farm operations, currently dormant, also hold a 20,000 metric-ton mining permit.
Rogue intends to restart quarrying at the Johnston Farm operation later this year.
On Aug. 29, Rogue announced that seven landscape-stone buyers in Ontario and the midwestern U.S. agreed to purchase 75% of the permitted production from both quarries.
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