Dual listed Platinum Group Metals has received government approval for Royal Bafokeng Platinum (RBPlat) to acquire 100% of the shares in Maseve Investments 11, the holding company of the Maseve mine, and all shareholder loans owed by Maseve, for an aggregate consideration in cash and RBPlat common shares, valued at approximately US$16 million (as of 6 September 2017).
More specifically, the South African Department of Mineral Resources (DMR) has granted consent in terms of Section 11 of the Mineral and Petroleum Resources Development Act to transfer the entire issued share capital in Maseve held by the company and one minority shareholder to RBPlat.
Maseve is the holder of the mining right underlaying the Maseve mine. With the grant of Section 11 approval all conditions precedent to the completion of the sale of Maseve to RBPlat have now been met.
“The board of directors of Platinum Group appreciate the DMR’s timely approval. The sale of the Maseve mine is important for Platinum Group to reduce debt and allow us to focus on our large-scale bulk, Waterberg palladium discovery. RBPlat will be able to preserve jobs and combine Maseve with their adjacent operations,” says Platinum Group CEO R. Michael Jones.
Platinum Group Metals and RBPlat announced a term sheet for a two-step sale transaction valued at approximately US$74 million on 6 September 2017. Later, on 23 November 2017, definitive agreements were executed.
On 5 April 2018 Maseve completed the sale of the Maseve concentrator plant and certain surface rights (“Step One”) to RBPlat for cash consideration.
RBPlat will now acquire 100% of the shares (“Step Two”) in Maseve, the holding company of the Maseve mine, and all shareholder loans owed by Maseve, for an aggregate consideration in cash and RBPlat common shares, valued at approximately US$16 million (approximately US$15.45 million at present) of which approximately US$854 935 (approximately US$755 378 at present) is to be paid in RBPlat common shares to a minority shareholder of Maseve.
The company intends to pay all of its net proceeds from Step Two, which may take several months to be fully realised into cash, to reduce outstanding indebtedness pursuant to a secured loan facility with Liberty Metals & Mining Holdings, LLC.
Closing of Step Two is expected to be complete before the end of April 2018. Once Step Two is complete the company will no longer be responsible for care and maintenance costs or the ongoing commitments of Maseve.