Atlatsa enters final phase of Anglo restructuring agreement
JOHANNESBURG (miningweekly.com) – Triple-listed Atlatsa Resources Corporation has initiated the final stage of its restructuring plan, announced in March 2013, which will result in Anglo American Platinum (Amplats) subscribing for 125-million new common shares in the group for an aggregate subscription price of R750-million.
The restructuring followed a detailed strategic review, which exposed Atlatsa’s likely inability – as a result of the tenuous current market environment – to repay a R3.3-billion debt to Amplats in the medium term.
Mining Weekly Online reported last month that the companies would implement new debt and working capital facilities, and Atlatsa would sell and transfer to Amplats the eastern section of the Ga Phasha platinum-group metals (PGM) project, together with its entire interest in the Boikgantsho PGM project, for R1.7-billion.
The final phase of the restructuring would comprise a series of transactions between Atlatsa and Amplats’ wholly owned subsidiary Rustenberg Platinum Mines, with the proceeds from the equity financing used by Atlatsa expected to further reduce its balance sheet debt and, consequently, reduce its cost of borrowing.
Atlatsa believed the plan would be fully completed by February.
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