Completion of the acquisition of Kwanda North and Central Block prospecting rights
27 August, 2019
Shareholders are referred to the Company’s interim results announcement on 24 July 2017 announcing that the Company, through its wholly owned subsidiary, Rustenburg Platinum Mines Limited (“RPM”), had made a conditional offer to acquire the resources specified in the Kwanda North and Central Block prospecting rights for cash consideration of R300 million from Atlatsa Resources Corporation (“Atlatsa”). Shareholders are also referred to the Atlatsa announcement released on 12 December 2018, regarding its agreement with Anglo American Platinum and including the key terms agreed in relation to Atlatsa’s two-phased restructuring plan (“Composite Transaction”), implemented by way of a Canadian court-approved plan of arrangement under section 288 of the Business Corporations Act (British Columbia) (“Arrangement”).
Shareholders are advised that all conditions to effect the Arrangement have now been fulfilled and that, on 27 August 2019, Anglo American Platinum and Atlatsa completed the acquisition and inclusion of the resources specified in the Central Block and Kwanda North prospecting rights into RPM’s Mogalakwena mining right. The administrative process of registration with the Mineral and Petroleum Titles Registration Office will now follow.
The additional components of the Composite Transaction relevant to the Company include, amongst others:
- The disposal of the Company’s 22.55% shareholding in Atlatsa for a nominal cash consideration;
- The waiver and/or capitalisation of all of the current debt owing by Atlatsa group to the Company totaling approximately R4.8 billion. From an accounting perspective, these loans have already been fully impaired;
- The waiver of further debt to be provided to Atlatsa until 31 December 2019 for care and maintenance costs at Bokoni Mine;
- The waiver of all of the debt owing by Atlatsa Holdings Proprietary Limited, Atlatsa’s controlling shareholder, to the Company totaling approximately R0.5 billion. From an accounting perspective, this loan has also already been fully impaired; and
- Atlatsa and the Company will retain their 51% and 49% respective shareholdings in the Bokoni Mine joint venture.
The Kwanda North and Central Block prospecting rights are adjacent to, and have been incorporated into the Mogalakwena mining right. The prospecting rights have not yet been classified as Mineral Resource. Shareholders may view a map of the relevant area on the Company’s website at: