Eastern Platinum (Eastplats) has reached an in-principle agreement with Hebei Zhongbo Platinum to restructure a transaction that will see Hebei Zhongbo acquiring the company’s entire platinum-group metals (PGMs) business and all investments, as well as all loan agreements between Eastplats and its subsidiaries.
The parties will now complete the sale and acquisition of the North West-based Crocodile River mine and associated intercorporate loans or $85-million, payable in cash on closing, which is estimated to occur on or before August 7.
The sale of the balance of the company’s remaining PGM business, comprising the Spitzkop, Kennedy’s Vale and Mareesburg projects, as well as intercorporate loans, will continue as previously disclosed for total consideration of $140-million.
The total consideration from the two transactions remains equal to $225-million, as outlined in the original agreement.