Anglo American Platinum acquires prospecting rights from Atlatsa

28 August 2019 (Last Updated August 28th, 2019 14:04)

Anglo American Platinum (Amplats), through its subsidiary Rustenburg Platinum Mines (RPM), has acquired the Kwanda North and Central Block prospecting rights from Atlatsa Resources for ZAR300m ($19.5m) in cash.

Anglo American Platinum (Amplats), through its subsidiary Rustenburg Platinum Mines (RPM), has acquired the Kwanda North and Central Block prospecting rights from Atlatsa Resources for ZAR300m ($19.5m) in cash.

The companies also completed the inclusion of resources specified in the Central Block and Kwanda North prospecting rights into RPM’s Mogalakwena mining rights in north-west South Africa.

Amplats said that the deal is part of a two-phased restructuring plan agreed with Atlatsa’s major shareholder RPM.

In December last year, Atlatsa agreed with Amplats on the restructuring plan implemented by way of a Canadian court-approved arrangement under section 288 of the Business Corporations Act (British Columbia).

Amplats said that it will now follow the administrative registration process with the Mineral and Petroleum Titles Registration Office.

The transaction also includes the disposal of the company’s 22.55% share in Atlatsa.

RPM will waive off all current debt owed by Atlatsa, and any further debt that may be incurred during the care and maintenance period of Bokoni Mine, which amounts to approximately ZAR4.8bn ($0.31bn).

The Bokoni mine is located in the region of Polokwane in Limpopo, South Africa.

Atlatsa and Anglo American will retain their 51% and 49% respective interests in the Bokoni Mine joint venture (JV).

In July 2017, Atlatsa signed an agreement with JV partner Anglo American Platinum to place the Bokoni mine on care and maintenance as part of a restructuring plan.

In addition to Mogalakwena, Amplats’ portfolio includes the Twickenham and Amandelbult mining operations.

In November 2018, Amplats closed the transactions to increase its ownership in the Mototolo JV in Mpumalanga, South Africa to 100%.