JOHANNESBURG (miningweekly.com) – TSX-, Aim- and JSE-listed Platmin will acquire Barrick Gold Corporation’s 10% interest in the Sedibelo platinum project, on the Western Limb of South Africa’s Bushveld Complex, for $15-million.

The platinum miner announced on Friday that it would also acquire a number of long-lead items required for the development of the project from Barrick for up to $45-million.

After having completed a bankable feasibility study (BFS) for the Sedibelo project, Barrick Gold had initially determined that the project was “robust”.

However, in October last year, it decided not to proceed with the noncore project, given the fall in platinum prices at the time.

Barrick Gold senior vice-president Cassie Boggs said that the company had received a number of expressions of interest from parties wanting to buy its stake in the project.

“After due consideration, we accepted the Platmin offer, and hope the property will be developed to its full potential and for the benefit of all stakeholders,” she noted.      

The Sedibelo project is situated between Platmin’s Pilanesberg Platinum Mine and its Magazynskraal platinum property. A subsidiary of the platinum miner is already conducting a BFS on the project on its behalf.

The two companies expect the transactions to close by the second quarter of this year.

“I am very pleased, that after extensive negotiations, Platmin has managed to secure this 10% interest in Sedibelo, as well as key long-lead items essential for mining development. This transaction positions Platmin well for the participation in any regional development,” commented Platmin CEO Tom Dale.       

The local Bakgatla-Ba-Kgafela tribe owns the remaining 90% interest in the project.

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