Atlatsa shareholders approve R1.7bn sale of Ga-Phasha to Amplats
The shareholders of triple-listed platinum-group metals (PGMs) miner Atlatsa Resources Corporation have confirmed their support for the company’s revised restructuring plan by approving all resolutions proposed at the company’s special general meeting on June 28.
In accordance with the approved resolu- tions, Atlatsa would now dispose of 31.4-mil-lion attributable PGM ounces, comprising the eastern section of the Ga-Phasha mineral property, to Anglo American Platinum (Amplats) for R1.7-billion.
The western section of the tenement would be consolidated into the company’s broader existing Bokoni mine lease area, where opencast mining operations on the Merensky reef had started.
Shareholders had further approved the issue of 125-million new Atlatsa common shares to Amplats for an aggregate cash subscription consideration of R750-million, or R6 a share.
The proceeds from the asset sale and new share subscription would be used to reduce the company’s historical debt by 75%.
In addition, Atlatsa would now have access to a new debt drawdown facility from Amplats worth up to R1.55-billion, at a weighted average effective interest rate of 2% a year through to 2020.
Chief commercial officer Joel Kesler said in a statement that the resolution would allow the company to significantly reshape its balance sheet and place it on a sound financial footing to deliver its 2020 operational strategy on a fully financed basis.
“This, together with continuous operational improvements at the Bokoni platinum mine, places us in an advantageous position to continue reducing unit operating costs and improving the com-pany’s financial position and performance going forward,” he commented.
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