The agreement will also see Northam Platinum procure immovable property comprising land and buildings for the platinum group metals (PGM) recycling equipment.
The aggregate consideration payable by Northam Platinum in respect of the transactions amounts to approximately US$10.7 million, to be settled in cash.
Closing and settlement of the transactions are envisaged to take place by no later than 1 September 2017.
The PGM recycling equipment will be acquired from A-1 Specialised Services, a recycler of PGM from automotive catalysts.
The PGM recycling equipment comprises, inter alia, multiple ceramic catalytic converter processing lines and ancillary equipment, including sampling and separation systems, transportation and a materials handling fleet.
The premises consist of approximately 30 acres of land as well as buildings measuring approximately 28 000 m2 used for warehousing, manufacturing and office space. It has direct access to excellent surrounding infrastructure, including roads and a direct rail connection.
The transactions afford Northam Platinum as an integrated primary and secondary producer, the opportunity to expand and diversify its business interests into PGM recycling.
Northam Platinum will be able to participate in the growing demand for recycled PGMs from auto catalysts and maintain and develop a strategic footprint in North America.
Northam Platinum CEO, Paul Dunne, says, “The transactions represent a low cost entry by Northam Platinum into a key segment of the broader PGM market.
“Northam Platinum has secured an excellent asset base of strategic future importance.”
Feature image credit: Wikimedia