The due diligence and execution of binding legal agreements for Platinum Group Metals to sell its Maseve mine for +- US$74 million has been completed.Royal Bafokeng Platinum (RBPlat) will acquire the mine (and holding company) for $62 million in cash and $12 million in RBPlat common shares. The proceeds of the Maseve mine sale will be used to pay down a substantial portion of the company’s debt.
RBPlat is to pay Maseve an initial $58 million in cash to acquire the concentrator plant and certain surface assets of the Maseve mine. A deposit in escrow was paid by RBPlat in the amount of R41.3 million on 9 October 2017.
Closing of this first step is subject to certain conditions, including RBPlat shareholder approval at a meeting scheduled for 30 November 2017 and the approval of the South African Competition Commission.
Closing of the second step, to acquire 100% of the issued equity in Maseve by way of a scheme of arrangement for $4 million in cash and approximately $12 million in RBPlat ordinary shares, is conditional upon the first step described above being completed, and is subject to certain requirements, including the approval of the South African Department of Mineral Resources and the approval, or confirmed obligation, of Maseve’s 17.1% minority shareholder.
Looking forward Platinum Group Metals plans to focus on its large-scale Waterberg project, a palladium dominant development asset where the company has established mineral reserves and resources. It recently sold an 8.6% interest in Waterberg to Impala Platinum for $17.2 million as part of a transaction where Impala bought an aggregate 15% interest in Waterberg for $30 million.
Feature image credit: Platinum Group Metals (Maseve mine)