Aquarius Platinum Agreement to sell Everest Mine to Northam
February 10 2015 - 1:00AM
UK Regulatory
TIDMAQP
AQUARIUS PLATINUM LIMITED
ASX, LSE & JSE
10 February 2015
Aquarius ENTERS AGREEMENT to sell Everest Mine to Northam
for R450 million
Aquarius Platinum Limited (AQP) is pleased to advise that its subsidiary,
Aquarius Platinum (South Africa) (Pty) Ltd (AQPSA), has entered into an
agreement to sell AQPSA's entire interest in the Everest mine and related
mining and processing infrastructure and immovable properties (Everest) to
Northam Platinum Limited (Northam) (together the "Disposal"), for an aggregate
consideration of R450 million, payable in cash. Everest mine was placed on
care-and-maintenance in June 2012 in light of market conditions prevailing at
that time. As at 30 June 2014 the gross assets of Everest were US$36 million
and the loss before tax attributable to Everest was $7.2 million.
The Disposal is to be completed in two parts:
* Northam will pay AQPSA R400 million on 26 June 2015 to acquire the
concentrator plant and other mining assets of the Everest Mine. This
payment is conditional on approval of the Competition Commission and the
Bakone Ba Phetla Communal Property Association agreeing to cancel the
existing lease of its immovable property to AQPSA and entering into a new
written lease with Northam by 23 June 2015 (Competition Approval);
* Northam will pay AQPSA R50 million to acquire the Everest mining right (and
all the obligations of AQPSA in respect of that right). This payment is
conditional upon the conditions to the first part of the sale being
fulfilled and the Minister of Mineral Resources granting consent to the
transfer of the Everest mining right to Northam in terms of section 11 of
the Mineral and Petroleum Resources Development Act (Ministerial Consent)
within three years of the signing of the sale agreement.
Should the Ministerial Consent not be obtained in time the first part of the
Disposal will not be unwound.
Northam will assume responsibility for carrying out the care and maintenance
services and providing contract mining services at the Everest Mine during the
period between the date of grant of the Competition Approval and the date of
Ministerial Consent.
AQP is in discussions with the UK Listing Authority regarding the
classification of the Disposal as either a class 1 or a class 2 transaction
under Chapter 10 of the Listing Rules. If the Disposal is a class 1 transaction
pursuant to the Listing Rules, the Disposal will require the approval of AQP's
shareholders. AQP will announce the outcome of these discussions once they have
been concluded.
AQP CEO Jean Nel noted that the sale presents a valuable opportunity to a broad
range of stakeholders. "For AQP, the proceeds from the Disposal will be used to
increase AQP's net cash and to strengthen the balance sheet in a somewhat
challenging market, and is in line with our stated objective of focussing on
our core operations at Kroondal and Mimosa and associated projects. And, at the
same time, the potential re-starting of the mine is expected to bring benefits
to local communities, both directly in terms of job creation and corporate
social investment, and indirectly through the associated benefits of economic
activity in the region."
Jean Nel added that, in reaching its decision to sell Everest, AQP considered
the capital that would be required to restart mining at Everest on a
stand-alone basis, the potential for AQP to combine Everest with other
operations in the area, the metal prices that would be required to deliver an
appropriate risk-adjusted return to invest the capital and alternative
investment propositions available to AQP.
"Management's view as AQP was that the sale of Everest, which is superfluous to
our present business plan, delivers the most appropriate realisation of value
from the Everest assets."
About Aquarius Platinum Group
The Aquarius Platinum Group is a focused, independent, primary producer of the
platinum group metals, which comprise platinum (Pt), palladium (Pd), rhodium
(Rh), osmium (Os), ruthenium (Ru) and iridium (Ir). The Aquarius Platinum Group
has assets in South Africa's PGM-bearing mineralised zone, the Bushveld
Complex, and the Great Dyke Complex in Zimbabwe.
Forward-looking statements
This announcement includes statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "projects", "anticipates", "expects",
"intends", "may", "will", or "should" or, in each case, their negative or other
variations or comparable terminology, or by discussions of strategy, plans,
objectives, goals, future events or intentions. These forward-looking
statements include all matters that are not historical facts. They appear in a
number of places throughout this document and include, but are not limited to,
statements regarding AQP's intentions, beliefs or current expectations
concerning, among other things, AQP's results of operations, financial
position, prospects, growth, strategies and the industry in which it operates.
By their nature, forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances. Forward-looking
statements are not guarantees of future performance and the actual results of
AQP's operations and financial position, and the development of the markets and
the industry in which AQP operates, may differ materially from those described
in, or suggested by, the forward-looking statements contained in this document.
In addition, even if the results of operations, financial position and the
development of the markets and the industry in which AQP operates are
consistent with the forward-looking statements contained in this document,
those results or developments may not be indicative of results or developments
in subsequent periods. A number of factors could cause results and developments
to differ materially from those expressed or implied by the forward-looking
statements including, without limitation, general economic and business
conditions, industry trends, competition, changes in regulation, currency
fluctuations, changes in its business strategy, political and economic
uncertainty and other factors discussed in this announcement. Forward-looking
statements may, and often do, differ materially from actual results. Any
forward-looking statements in this document speak only as of their respective
dates, reflect AQP's current view with respect to future events and are subject
to risks relating to future events and other risks, uncertainties and
assumptions relating to AQP's operations, results of operations and growth
strategy. Subject to the requirements of the Financial Conduct Authority, the
London Stock Exchange, the Listing Rules and the Disclosure and Transparency
Rules (and / or any regulatory requirements) or applicable law, AQP explicitly
disclaims any obligation or undertaking publicly to release the result of any
revisions to any forward-looking statements in this document that may occur due
to any change in AQP's expectations or to reflect events or circumstances after
the date of this document. No statement in this document is intended as a
profit forecast or profit estimate, nor should any statements be interpreted to
mean that earnings or earnings per share will necessarily be greater or lesser
than those for the relevant preceding financial periods of AQP.
For further information please contact:
In Australia:
Willi Boehm
Aquarius Platinum Corporate Services Pty Ltd
+61 8 9367 5211
In South Africa:
Jean Nel
Aquarius Platinum (South Africa) (Pty) Ltd
+27 12 001 2001
or visit: www.aquariusplatinum.com
REGISTERED OFFICE
Aquarius Platinum Limited ? Clarendon House ? 2 Church Street ? Hamilton HMCX
Bermuda
Email: info@aquariusplatinum.com
Telephone: +61 8 9367 5211
END
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