Amplat Sells Stake In Bafokeng Rasimone Platinum
RPM entered into a sale and purchase agreement of R1.863bn (around $135m) recently with RBPlat’s subsidiary, Royal Bafokeng Resources (RBR).
Commenting on the transaction, Anglo American Platinum’s CEO, Chris Griffith said that the transaction allowed RBPlat to increase its attributable resource and reserve base in BRPM, and further empowerment in the PGM industry. RBPlat would fully own and operate the low cost, high quality assets with attractive growth optionally at Styldrift.
Furthermore, the disposal of interest in the BRPM JV is expected to allow Anglo American Platinum to focus its capital allocation into its own-managed mines and projects rather than into non-managed operations where it held a minority interests, explained Griffith.
Amplat will retain its right to process 50% of the BRPM JV concentrate for the life of mine, where RBPlat will retain its termination right on the remaining 50% of BRPM JV concentrate every five years, with the earliest termination being in August 2022, said the company.
The leading PGM producer stated that any portion of the purchase consideration remaining would be deferred and left outstanding on loan account and escalated at a rate equivalent to RBPlat’s borrowing rate plus a premium of 2%.
However, the deferred consideration will be paid in three equal tranches after 1.5 years, 2.5 years and 3.5 years from the completion date.
The effective date of the transaction is expected to be in Q3 of 2018.