Hebei Zhongheng Tianda Platinum (HZT) in China has signed an agreement to acquire Crocodile River mine from Eastern Platinum for $50m.
The mine is located on the western limb of the Bushveld Complex, near the town of Brits in North West Province of South Africa.
HZT’s acquisition will also include associated intercorporate investments and loans.
As part of HZT’s acquisition, Eastern Platinum will also have to acquire certain minority interests.
Eastern Platinum has signed agreement with certain holders of the minority interests to buy their interests in all the company’s projects, including the Crocodile River mine for $13m.
The Crocodile River mine was placed on care and maintenance in December 2003, reopening in 2004 and has undergone development and refurbishment of surface facilities since then.
The mine development in 2010 comprised underground electrical upgrades, and ongoing works at the Zandfontein vertical shaft.
This included construction of dams for underground water control.
In June 2013, Eastplats decided to suspend funding for the mine due to continuing negative outlook in the global economic environment, sustained weakness in PGM pricing, and the operating environment in South Africa.
The mine’s underground operations consist of Maroelabult and Zandfontein.