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Eastplats, Hebei Zhongbo agree on reworked PGM deal

8th June 2015

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – 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 metal (PGM) business and all investments, as well as all loan agreements between Eastplats and its subsidiaries.

The parties would now complete the sale and acquisition of the North West-based Crocodile River mine and associated intercorporate loans for $85-million, payable in cash on closing, which was 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, would continue as previously disclosed for total consideration of $140-million.

The total consideration from the two transactions remained equal to $225-million, as outlined in the original agreement.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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