TSX-listed mining firm Eastern Platinum (Eastplats) will be buying out $27 million minority interests in Chinese firm Hebei Zhongbo Platinum, in terms of its agreement to sell its South African platinum assets.
Eastern Platinum reached an agreement with Hebei Zhongbo in November, whereby Hebei Zhongbo would acquire the company’s entire South African platinum group metal business (including a majority of the interests held by the Company’s existing minority partners) and all loan agreements that Eastplats has with its subsidiary companies for a total gross consideration of US$225 million payable in cash on closing.
As part of the acquisition, the company is required to buy out the minority interests upon closing. The aggregate amount to be paid for the buy-out of these minority interests is US$25 737 000, payable upon the closing of the acquisition transaction with Hebei Zhongbo.
Closing of the acquisition is subject to certain conditions, including approval by the shareholders of Eastplats and the necessary regulatory, South African and People’s Republic of China approvals.
The acquisition transaction is expected to close within 3 to 6 months.