Amplats sells BRPM JV stake to RBPlat for R1.86bn

DURBAN – Anglo American Platinum (Amplats) has agreed to sell its 33% interest in the joint venture Bafokeng Rasimone Platinum Mine (BRPM JV) for R1.86billion to Royal Bafokeng Platinum (RBPlat).

Amplats announced yesterday that its subsidiary Rustenburg Platinum Mines (RPM) has entered into a Sale and Purchase Agreement (SPA) on July 4 with RBPlat's wholly owned subsidiary, Royal Bafokeng Resources (RBR).

RBPlat is a subsidiary of Royal Bafokeng Holdings and manages commercial badets for the Bafokeng tribe.

Amplats' CEO, Chris Griffith, said that Amplats had accepted an offer from Royal Bafokeng Platinum for its 33% stake in the BRPM joint venture, while retaining the purchase of concentrate of BRPM JV. "The deal allows RBPlat to increase its resources and its reserve base attributable to BRPM, and strengthens the platinum group metals industry's self-reliance with RBPlat owning and operating high-end badets." low cost quality with an attractive growth option at Styldrift ". Griffith says.

The group stated that the transaction remained subject to the fulfillment of certain conditions, including the approval of the shareholders of RBPlat and the lenders, as well as RBPlat implementing and completing the capital increase and receiving the proceeds of this capital increase. The effective date of the transaction is expected to be in the third quarter of 2018.

"The transfer of interests in the BRPM joint venture will allow Anglo American Platinum to focus its capital allocation in its mines and projects managed by it "Griffith

BRPM JV produces 180,000 ounces of platinum a year

Amplats stated that the exit of the BRPM joint venture allowed it to concentrate its capital in its own mines and projects rather than in However, Anglo American Platinum will retain its right to process 50% of the BRPM JV concentrate during the life of the mine, and RBPlat will retain its right to terminate on the remaining 50% of the mine.

BRPM joint venture every five years, with the The earliest termination being in August 2022.

The group indicated that the purchase consideration of R1.86bn would be increased by any con RPM's capital exposures with respect to its 33 percent stake in the BRPM JV between PSA signing and completion of the transaction, so that RPM effectively ceases to contribute to the BRPM joint venture as of the date of SPA's signature.

The purchase consideration will be settled on the date of completion of the transaction by a cash payment. RBR equivalent to the product that RBPlat obtains through a capital increase of 5% of its outstanding shares to R200 million at current market prices, plus any capital contribution made by RPM to the BRPM joint venture between the signing of the SPA and the date of completion. The group stated that any portion of the remaining purchase consideration would be deferred and left over on the loan account and indexed at a rate equal to RBPlat's borrowing rate plus a premium of 2%.

The deferred counterpart will be paid in three equal installments.

-BUSINESS REPORT