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DMR executes transfer of Boikgantsho prospecting rights

31st October 2013

By: Leandi Kolver

Creamer Media Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – Platinum group metals miner Atlatsa Resources on Thursday said the Department of Mineral Resources (DMR) had executed the transfer of prospecting rights relating to the Boikgantsho platinum project to Anglo American Platinum (Amplats).

The mineral title transfer executions, together with previous consents obtained from the DMR for Atlatsa to sell and transfer these mineral titles to Amplats, fulfilled an important condition precedent for the implementation of Atlatsa’s restructure plan, the company said.

The R3.5-billion restructure plan between Amplats and Atlatsa was announced in March and was in the process of being finalised with the relevant regulatory authorities.

In terms of the plan, Amplats would acquire the eastern section of Atlatsa’s Ga-Phasha and Boikgantsho projects for R1.7-billion, the proceeds of which would be used by Atlatsa to reduce its existing debt to Amplats.

The transfer of the Ga-Phasha mineral property was approved by the DMR in August.

The restructure plan further entailed Amplats subscribing for 125-million new common shares in Atlatsa for an aggregate subscription price of R750-million, the proceeds of which would be used by Atlatsa to further reduce the existing debt owing to Amplats.

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 that would be repayable between 2018 and 2020.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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