HomeNewsWesizwe acquires Angloplat's 37% WBJV interest

Wesizwe acquires Angloplat’s 37% WBJV interest

Mike Solomon,
CEO, Wesizwe
Johannesburg, South Africa — MININGREVIEW.COM — 03 September 2008 – Emerging new generation platinum miner Wesizwe Platinum Limited has announced its intention to acquire Anglo Platinum Limited’s entire 37% stake in the Western Bushveld Joint Venture (WBJV), which is held through its wholly owned subsidiary Rustenburg Platinum Mines Limited (RPM). Wesizwe will pay Anglo Platinum an amount of R1.162 billion in the form of 211,850,125 new shares in Wesizwe.

A media release issued here revealed that in a concurrent transaction, Platinum Group Metals (PTM) would purchase RPM’s 37% participation interest in Projects 1 and 3 (the PTM Projects) from Wesizwe for R785.5 million. This purchase consideration would be offset by the sale of PTM’s 18.5% participation interest in the WBJV’s Project 2, of which approximately 12% makes up the Wesizwe Project, for R376.9 million. The balance of R408.6 million would be payable in cash to Wesizwe by PTM and applied towards Wesizwe’s contributions to the capital costs of the PTM projects. Wesizwe’s 26% stake in PTM Projects was acquired through the buy-out of Africa Wide Mineral Prospecting and Exploration in April 2007.

The release pointed out that these transactions would result in Anglo Platinum owning 26.57% of Wesizwe, while Wesizwe would gain 100% control over its core Frischegewaagd–Ledig Project. As a result, Wesizwe’s attributable platinum group metal (PGM) resources would increase from 13 million ounces to 15.7 million ounces, while the company’s forecast attributable production ounces would increase from 331 000 ounces to 415 000 ounces per year once the two projects reached steady state production.
An important feature of these transactions is the parties’ commitment to advancing BEE involvement in the sector from a regional ownership, production and ounces perspective.

Anglo Platinum has agreed to work with Wesizwe in an effort to place the consideration shares with BEE partners designated by Wesizwe in order to promote the spirit, aims and objectives of the Mineral and Petroleum Resources Development Act.

Commenting on the proposed transactions, Wesizwe CEO Mike Solomon said: “This is a significant milestone in our short history that has been marked by strategic rationalisation and successful project development.

“The proposed transactions are completely in line with our stated strategy of building a top quality mine, developing shareholder value through logical rationalisation, and enhancing BEE participation in the platinum mining sector,” he added. “Together with Anglo Platinum and our existing principal BEE partner, the Bakubung Ba Ratheo Community, we firmly believe that we are at an exciting stage in our company’s development, and that this transaction will considerably strengthen the strategic BEE credentials of the company and fulfill the true aims of the MPRDA,” he concluded.