Eastern Platinum has reached an agreement with Hebei Zhongbo Platinum Co. (HZP) which sees it acquire its South African assets in two phases.
As agreed, the parties would proceed forthwith to complete the purchase and sale of the Crocodile River mine and associated inter-corporate loans for US$85 million, payable in cash on closing (estimated to occur on or before 7 August, 2015).
HZP will however acquire all of the company’s platinum group metal business and all investments and loan agreements that Eastplats has with its subsidiary companies (the “Original Acquisition”).
The sale of the balance of the company’s remaining PGM business (the Spitzkop, Kennedy’s Vale and Mareesburg projects and inter-corporate loans) continues as previously disclosed for total consideration of $140 million and these transactions are estimated to close on or before 31 October, 2015. The total consideration from the two transactions remains equal to $225 million as in the Original Acquisition.
The restructuring of the transaction as described above was determined to be in the best interests of the company and HZP as the manner to best address timing issues with respect to various submissions on a regional asset basis that are required for regulatory approvals for the Original Acquisition as a whole.
The restructuring of the Original Transaction as detailed above and the closing of the above referenced transactions remain subject to the execution of definite agreements and receipt of all necessary regulatory approvals.