JOHANNESBURG (miningweekly.com) – JSE- and Aim-listed Braemore Resources had secured first right of refusal over the nickel and platinum projects of its controlling Atomaer shareholder and put an end to a perceived share overhang, CEO Leon Coetzer said on Monday.

Coetzer said that the new relationship removed the potential for competition between the two companies as well the performance shares being converted to ordinary shares.

Atomaer, which owned 40% of Braemore’s 35-million ordinary shares, had agreed to the performance shares conversion taking place once Braemore had agreed, with BHP Billiton Nickel West, how the Leinster nickel sulphide tailings project in Australia would be exploited.

For as long Atomaer held at least 30% of Braemore’s ordinary shares, Braemore would have a first right of refusal to acquire interests and rights in each new nickel and platinum sulphide project acquired by any Atomaer group company.

Atomaer would be entitled to appoint two directors to the Braemore board and a committee of non-Atomaer directors would take decisions on Braemore matters relating to the Atomaer group.

The project management functions previously performed by Atomaer would be transferred to Braemore, and Atomaer would not compete with Braemore in nickel and platinum smelting and refining activities.

Braemore on Thursday opened its 3,2-MW ConRoast platinum smelter at Mintek, Johannesburg, which was expected to create opportunities for new entrants into the platinum industry, South Africa’s Department of Minerals and Energy DG Sandile Nogxina said.

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