Atlatsa Resources, the South African platinum mining BEE company, said on Wednesday that it is in talks with Anglo American Platinum (Amplats) surrounding the future sustainability of Bokoni mine, located on the eastern limb of the Bushveld Complex, as well as potential alternative financial support for the company in light of the current challenges within the South African platinum industry.
This following after terms and conditions of a letter of support were not met within their prescribed timeframe by June 30, 2015.
In November 2014, a letter of support was received from Amplats to provide financial support up to a maximum of R422 million to March 31, 2016, in the event of unforeseen circumstances not within the Atlatsa’s control that may result in Bokoni platinum mines not meeting its planned cash forecasts.
Further to various interactions between Atlatsa, Anglo Platinum and the Department of Mineral Resources, Atlatsa advised on Wednesday that definitive agreements in respect of the purchase by Rustenburg Platinum Mines of at least a further 25% in the Kwanda North prospecting rights and at least 60% in the Central Block prospecting rights, have not been executed.
Additionally, given the depressed price of Atlatsa shares and potential dilution to existing shareholders as a result of the share subscription, Atlatsa executives have been restricted from subscribing for R60 million of equity in Atlatsa.