Pure Alumina Ltd. signed a binding agreement to acquire Toronto-based high-purity alumina producer Polar Sapphire Ltd.

The company will pay C$25.8 million in shares and cash to private equity interests for the acquisition.

Pure Alumina aims to expand high-purity alumina production to 5,000 tonnes per annum within three years.

The company said March 21 that it is looking to raise A$30 million through a combination of debt and equity to fund the acquisition and start construction and commissioning of the first 1,000 tpa of production capacity.

The transaction is expected to close in the third quarter.