LONDON (Alliance News) - Aquarius Platinum Ltd said Tuesday that it has agreed to sell its interest in the Everest mine for a total of ZAR450 million in cash to Northam Platinum Ltd.
The mine, which is located in the province of Mpumalanga in South Africa, had been placed on care-and-maintenance in June 2012 due to market conditions prevailing at that time.
Northam will pay ZAR400 million June 26 to acquire the concentrator plant and other mining assets of the mine, subject to approval from the Competition Commission and the Bakone Ba Phetla Communal Property Association agreeing to cancel its existing lease and entering into a new one with Northam.
It will then pay the remaining ZAR50 million to acquire the Everest Mining Right, conditional on approval from the Minister of Mineral Resources granting consent.
Northam will take up responsibility for the care and maintenance services, and providing contract mining services at Everest during the period between the grant of competition approval and the grant of ministerial consent, Aquarius said.
Aquarius said that proceeds from the sale will be used to increase its net cash, ans strengthen its balance sheet.
"Management's view [...] 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," said Chief Executive Officer Jean Nel in a statement.
Shares in Aquarius Platinum are trading up 10% at 13.75 pence at the market open Tuesday.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
