Appian Capital Advisory has secured a significant legal victory as the UK Supreme Court ruled that Sibanye-Stillwater (JSE: SSW) (NYSE: SBSW) must compensate Appian for terminating a $1.2 billion acquisition deal for two Brazilian mines. Appian is claiming damages of up to $522 million, while Sibanye contends it owes no or significantly reduced damages.
The dispute began in 2022 when Sibanye withdrew from acquiring shares in Atlantic Nickel and Mineração Vale Verde, citing a geotechnical event at the Santa Rita mine as the reason. Appian disputed this assertion, leading to the court ruling that the event was neither expected to be material nor justified for termination of the sale and purchase agreements (SPAs).
Appian plans to recover its full losses, including accrued interest since January 2022, with a hearing to determine the damages scheduled for November 2025. Sibanye argues that Appian could have sold the mines to another buyer at a similar price and maintains its management acted in good faith during the termination.
The Santa Rita mine is one of Brazil’s long-life nickel sulphide operations and is transitioning to underground mining, expected to boost production rates and extend its operational life beyond 20 years
