Anglo American Platinum (Amplats) has announced that all conditions precedent to the sale and purchase agreement with Royal Bafokeng Platinum and Royal Bafokeng Resources Proprietary have been fulfilled.
Amplats wholly-owned subsidiary, Rustenburg Platinum Mines (RPM) has therefore completed the disposal of its 33% interest in the Bafokeng Rasimone Platinum Mine joint venture (BRPM JV), with effect from 11 December 2018.
Accordingly, Royal Bafokeng Resources (RBR) took over full ownership of the operation on the completion date.
RPM will retain its right to purchase 50% of the BRPM JV concentrate for the life of mine, and RBPlat will retain its termination right on the remaining 50% of the concentrate every five years, with the earliest possible termination date being in August 2022.
“Following the sell-down of RPM’s listed interest in RBPlat earlier this year, this completes RPM’s exit from RBPlat and the BRPM JV,” comments Amplats CEO Chris Griffith.
“The completion of the sale of RPM’s 33% interest in the BRPM joint venture allows Amplats to further simplify its portfolio and focus its capital allocation into own-managed mines and projects.
“Importantly, RPM will retain its right to purchase 50% of the BRPM JV’s concentrate for the life of mine.
“The transaction allows RBPlat to increase its attributable resource and reserve base and furthers empowerment in the PGM industry, with RBPlat fully owning and operating low cost, high quality assets with attractive growth optionality at Styldrift,” he continues.
The total purchase consideration is comprised of R1.863 billion, plus an additional R315 million, which equates to the repayment of RPM’s contributions into the BRPM JV since announcement of the transaction.
The upfront purchase consideration was settled on the completion date by a cash payment by RBR of R555 million.
As outlined in the announcement made on 5 July 2018, the remaining purchase consideration will be deferred and left outstanding on loan account and escalated at a rate equivalent to RBPlat’s borrowing rate plus a premium of 2%.
The deferred consideration will be paid in three equal tranches after 1.5 years, 2.5 years and 3.5 years from the completion date.
RBPlat has the option to settle the outstanding consideration either in cash or by the issue of additional RBPlat shares to RPM at each payment date.