South Africa approves Eastern Platinum’s PGM business sale to Hebei for $225m

16 September 2015 (Last Updated September 16th, 2015 18:30)

The competition authorities of South Africa have approved the sale of Canada-based metals producer Eastern Platinum's platinum-group metals (PGM) business to Hebei Zhongbo Platinum (HZP) in a $225m deal.

The competition authorities of South Africa have approved the sale of Canada-based metals producer Eastern Platinum's platinum-group metals (PGM) business to Hebei Zhongbo Platinum (HZP) in a $225m deal.

Previously announced, HZP will also acquire Eastern Platinum's investments and loan agreements that it has with its subsidiary companies.

On 8 June, the parties agreed to a restructuring of the $85m deal and initial go-ahead of purchase completion and sale of the Crocodile River Mine and associated inter-corporate loans.

"HZP will also acquire Eastern Platinum's investments and loan agreements that it has with its subsidiary companies."

This would be followed by the purchase and sale of the balance of the company's remaining PGM assets, which include the Spitzkop, Kennedy's Vale and Mareesburg projects and inter-corporate loans for $140m.

According to Eastern Platinum, the restructuring and closing of the transactions remain subject to conditions, in addition to gaining all necessary South African regulatory approvals.

Located on the western limb of the Bushveld Complex, near the town of Brits in South Africa's North West Province, the Crocodile River Mine project consists of four mining sections.

The sections include Maroelabult in the east, Zandfontein in the centre, Crocette in the west, and Kareespruit between Maroelabult and Zandfontei.