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Sibanye-Stillwater will provide $30 million in relief to New Century after its Century mine in Queensland was forced to suspend operations due to high rainfall.

In an ASX announcement, Sibanye said New Century had requested emergency financial support to get its flagship mine back up and running.

The rain and subsequent flooding cut off access to Century by road, impacting deliveries to site of production consumables.

Sibanye is currently engaged in takeover talks with New Century after launching an off-market bid of  $1.10 cash per share February.

The New Century board recommended its shareholders accept the offer, citing material uncertainty that may cast significant doubt on New Century’s ability to continue to operate.

Sibanye called the New Century balance sheet “under strain” due to potential funding requirements for growth projects which could result in a raise in additional equity and a material dilution for existing shareholders.

Despite the suspension of the Century mine, both companies are planning for the takeover to go ahead.

“No safety incidents were experienced, and core infrastructure remains secure; however, due to the extent of the flooding event, operations are currently estimated to remain suspended for a further 2–3 weeks,” Sibanye said in its announcement.

New Century has estimated that approximately 15,000–20,000 kilotonnes (kt) of zinc production will be affected by the suspension.

“Sibanye-Stillwater remains committed to working with New Century to ensure the safety of the on-site team and the safe restart of operations,” Sibanye-Stillwater said.

“Sibanye-Stillwater also remains committed to working with New Century to ensure that it remains in a position to meet its financial obligations while it recovers from this unforeseen event, subject to certain conditions.”