In its forecast move to expand the business of Hydromet (HMC) the Company is to acquire a major interest in PGM Refiners Pty Ltd, a leading electronic waste operator in Victoria. PGM operates out of new premises in Dandenong Victoria and deals largely with local government councils, landfill operators, government bodies and corporate clients. HydroMet has entered into a Subscription Agreement which will lead to the Company acquiring a controlling interest in PGM. Hydromet’s initial investment will be $1.38 million to subscribe for 1,100,000 new PGM ordinary shares issued at $1.25 per share representing approximately 35.5% of the expanded PGM issued capital.
E-waste is one of the fastest growing sectors within the waste industry both locally and globally. Such growth will be further underpinned by the recently enacted Commonwealth Product Stewardship legislation for end-of-life TVs and Computers, mandating higher recycling rates till 2021 and beyond. PGM is one of the leading companies in Australia for recycling electronic waste, using innovation and technology as fundamental building blocks in its business model. The proposed acquisition will position HydroMet as a leading provider of E-waste recycling services in Australia with the potential to expand into other hazardous waste recycling segments. The proposed acquisition will offer synergistic opportunities for HydroMet and PGM to achieve improved downstream e-waste processing recoveries in such areas as the treatment of lead bearing CRT glass and circuit boards containing precious metals, which will result in HydroMet becoming a niche market leader. Highly motivated and experienced staff and management of PGM will add significant value to Hydromet’s future growth.