Elcu Pumps (Pty) Limited entered into an agreement to acquire Brandvlei Sand Quarry and ancillary business from WG Wearne Limited (JSE: WEA) for ZAR 7 million on March 31, 2017. The Brandvlei Sand Quarry and ancillary business includes the business of Brandvlei including the mining right and property and no liabilities of Brandvlei save for the rehabilitation liability. Upon completion of the transaction Elcu Pumps (Pty) Limited owned 40% by WG Wearne Limited and remaining 60% by Dennis Human and other investors, including a staff member of the Designated Adviser of Wearne, Exchange Sponsors (2008) (Pty) Limited. The transaction will be funded through a combination of a bank loan and a long term loan from the investors. The transaction proceeds will be used to reduce debt and improve the liquidity position of WG Wearne Limited in general. The completion of the transaction is subject to approval by the board of directors of Wearne and entering into detailed agreements between the parties. The transaction is also requires fairness opinion from independent expert as far as shareholders of Wearne are concerned. The effective date for the sale of Brandvlei is expected to be May 1, 2017. On June 22, 2017, the fairness opinion with respect to the transaction was provided. BDO Corporate Finance Proprietary Limited acted as fairness opinion provider for Wearne. On March 31, 2017 and May 22, 2017, Wearne Group entered into various agreements regarding sale of Brandvlei quarry business which changed the name of buyer to Brandvlei Sands (Pty) Limited. As of December 7, 2017, Wearne will only subscribe for 20% of Brandvlei’s issued shares, compared to 40% previously and Wearne and its subsidiaries undertake to purchase at least 1 500 tonnes of plaster sand from the Buyer per month for the next two years. The process for registration of transfer of the property into the name of Brandvlei has commenced and the transaction is expected to complete during January 2018. Elcu Pumps (Pty) Limited cancelled the acquisition of Brandvlei Sand Quarry and ancillary business from WG Wearne Limited (JSE: WEA) on March 31, 2018.