JOHANNESBURG (miningweekly.com) – Platinum-group metals (PGM) miner Atlatsa Resources on Tuesday stated that the Department of Mineral Resources (DMR) had consented to the transfer of the eastern section of its Ga-Phasha mineral property, which comprised 31.4-million PGM ounces, to Anglo American Platinum (Amplats).

Atlatsa would sell the property to Amplats for R1.7-billion, and would use the capital to reduce its existing R3.3-billion debt owing to Amplats.

The approvals were granted by the DMR in terms of Section 102 of the Mineral and Petroleum Resources Development Act, fulfilling a key condition for the implementation of the company’s restructure plan, which is expected to be completed by the end of September.

In addition to the Ga-Phasha agreement, through the restructuring plan, Amplats would also subscribe for 125-million new common shares in Atlatsa for R750-million, the proceeds of which would be used to further reduce the existing debt owed to the platinum giant.

After taking the transactions into account, Atlatsa’s remaining debt to Amplats would be about R830-million.

Moreover, Amplats would provide Atlatsa with an additional debt facility up to a limit of R1.55-billion, which would attract an interest rate and was repayable between 2018 and 2020.

“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,” Atlatsa chief commercial officer Joel Kesler said in a statement.

“This, together with continuous operational improvements at Bokoni platinum mine, places us in an advantageous position to continue reducing unit operating costs and improve both mine and the company’s financial position and performance going forward,” he commented.

Last week, Atlatsa reported its strongest operating quarter and half-year performance in five years, lifting output by 27.5% from 61 897 oz in the first half of 2012 to 78 944 oz for the six months ended June 30.