South Africa-based Sibanye Gold’s wholly owned subsidiary has agreed to acquire Bermuda-based Aquarius Platinum in a deal worth R4bn ($294m).
The latest deal follows Sibanye’s proposed acquisition of the Rustenburg Platinum Mines (RPM) operations in September from Anglo American Platinum for R1.5bn ($331m).
Sibanye Gold CEO Neal Froneman said: "The acquisition of Aquarius is consistent with Sibanye’s strategy to secure value accretive, cash flow enhancing opportunities, which support its dividend strategy.
"Significant additional value can be realised from optimising inherent regional and operational synergies between Aquarius’ Kroondal mine and the Rustenburg Operations, which are adjacent to it."
Aquarius has signed an acquisition facility agreement with HSBC Bank to arrange funding for the transaction if needed.
The company’s main operating asset is the Kroondalmine, 120km north-west of Johannesburg, and Platinum Mile retreatment facilities on Anglo Platinum’s Rustenburg mine. It also has a stake in the Mimosa venture in Zimbabwe with Impala Platinum.
Sibanye expects the low-cost operations of Aquarius to provide the company with additional platinum-group metals (PGM) operational experience.
Aquarius Platinum chairman Sir Nigel Rudd said: "The board of Aquarius has carefully considered the proposal received from Sibanye, taking into account all relevant company and macro considerations."
Expected to be implemented during the first quarter of 2016, the deal will also enable Sibanye venture into Zimbabwe.
The deal will be closed subject to necessary regulatory approvals from the South African and Zimbabwean Competition Authorities and the South African Reserve Bank.