Sierra Rutile, the world’s largest natural rutile producer, is now owned by Sierra Leone based company Leonoil, transitioning to local ownership. Leonoil, located in Freetown, is 100% owned by Sierra Leoneans. 

On September 30th, 2024, Leonoil completed its acquisition of Sierra Rutile Holdings Limited (SRX), marking Sierra Leonean ownership and ending its trading on the Australian Securities Exchange(ASX). 

Since its founding in 1971, foreign nationals primarily owned Sierra Rutile. Australians held ownership for the past six years. This change to local ownership marks a monumental achievement for Sierra Leone and the company. 

How Leonoil Acquired Sierra Rutile 

Leonoil Company Limited and Gemcorp Commodities Assets Holdings Limited both bid to acquire a majority of SRX Shares. 

Leonoil offered A$0.18 per SRX share and declared on August 15, 2024 that their offer was final unless a competing proposal arose. The SRX Board unanimously recommended shareholders to accept this offer. 

Gemcorp offered A$0.16 per SRX share but later withdrew, seeking relief from pursuing the deal. 

Leonoil’s offer was accepted by SRX directors who urged shareholders to follow, as no better offers were expected. 

By September 23rd, 2024, Leonoil owned over 90% of SRX shares and initiated a compulsory acquisition process to purchase the remaining shares under the Corporations Act 2001. The company required shareholders who had not sold to do so. 

Under ASX Listing Rule 17.4, trading of SRX shares is to be suspended for five business days after the compulsory acquisition notice, which was given on September 30th, 2024.

Sierra Rutile will be removed from the ASX official list on October 3, 2024, ending all trading on the market.

Ibrahim Cole, Managing Director of Leonoil and New Board member at SRX, announced the ownership shift on LinkedIn and encouraged government partnership.  

“Today is a historic day for Sierra Leone as Leonoil Company Limited has completed the acquisition of a publicly traded company with a local asset holding over 50 years of mining operations… We look forward to establishing a productive partnership with the Government of Sierra Leone and all relevant stakeholders to achieve our shared goals and objectives,” he said. 

Changes Implemented at Sierra Rutile Following Acquisition

Leoneoil’s acquisition of the majority of SRX shares gives it controlling interest in the company. Three Leonoil representatives, Mohamed Cole, Ibrahim Cole, and Patrick Lambert, have joined Sierra Rutile’s Board of Directors. 

Mohamed Cole, initially appointed as Leonoil’s representative, became the new Chairman of the SRX Board on September 20th, 2024. He replaced Greg Martin who remains on the Board as an independent non-executive director. 

Two independent non-executive directors, Graham Davidson and Jan Joubert, resigned from the Board on September 23rd, 2024. 

Martin Alciaturi, Sierra Rutile’s Finance Director, announced his retirement from his executive role effective December 6th, 2024. He also stepped down from the Board to allow Leonoil’s representatives to join early. 

Following these changes, the Board now consists of three representatives of Leonoil, Theuns de Bruyn, Managing Director and CEO for Sierra Rutile and non-executive directors, Greg Martin and Patrick O’Connor.  

Greg Martin, former SRX Chairman, praised Aluciaturi and the executive team for advocating a stronger value proposition for Sierra Rutile. He also welcomed Leonoil to the team. 

“These proposed Board changes are a natural transition for Sierra Rutile as majority ownership passes to Sierra Leone-based Leonoil. Sierra Rutile is an iconic business in Sierra Leone and for it now to be majority locally owned is a major milestone.” 

The shift to local ownership fosters national pride and  marks the involvement to local companies and stakeholders in mining. 

With Leonoil in control, increased investment in Sierra Rutile’s operations may come from the government and Sierra Leoneans globally. 

Who Are Leonoil? 

Sierra Leoneans fully own Leonoil Company. Over the years, it has developed into a reputable Marketing Company in Sierra Leone.

Leonoil specializes in marketing automotive gas oil, petroleum motor spirit, and lubricants.

The company owns and operates twenty-four gas station outlets across Sierra Leone. It manages the largest,  most modern terminal in Sierra Leone, which ranks amongst the best in the sub-region.

A filling station owned by Leonoil