Anglo American Platinum Sells Union Mine JV, Masa Chrome to Siyanda Resources
February 15 2017 - 2:23AM
Dow Jones News
By Razak Musah Baba
LONDON--Anglo American Platinum Ltd. (AMS.JO) Wednesday said it
is selling its interests in the Union Mine joint venture and Masa
Chrome to Siyanda Resources Proprietary Ltd., for up to 6.4 billion
South African rand ($475.7 million).
The South African platinum producer said Wednesday that its
subsidiary Rustenburg Platinum Mines Ltd., has entered into a sale
and purchase agreement to sell its entire 85% interest in Union
Mine and its 50.1% interest in MASA Chrome Company Proprietary
Ltd., to a subsidiary of Siyanda
The transaction includes an initial amount of ZAR400 million,
payable in cash, as well as a deferred consideration, the company
said. The deferred consideration has a cap of ZAR6.0 billion, it
said.
The remaining 15% of Union Mine is owned by the
Bakgatla-Ba-Kgafela traditional community. The Masa Chrome plant is
a joint venture with Siyanda Resources.
Anglo American Platinum said it intends to use the proceeds to
reduce debt.
Also as part of the deal, Siyanda will sell concentrate produced
by the Union Mine to Anglo American Platinum for a period of seven
years.
-Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
(END) Dow Jones Newswires
February 15, 2017 03:08 ET (08:08 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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