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Eastplats to net $175.5m from sale of S African assets to Chinese firm

6th January 2015

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Vancouver-based mining firm Eastern Platinum (Eastplats) expects to net $175.5-million from selling its South African platinum assets to Chinese firm Hebei Zhongbo Platinum, after accounting for buying out minority partners and settling other costs.

The TSX-listed Eastplats on November 7 announced that the Chinese firm had agreed to pay $225-million in cash for its assets, including the flagship Crocodile River mine, in South Africa’s North West province, which was shuttered on August 1, 2013, and its Eastern Limb development project, which too was placed on care and maintenance in the fourth quarter of 2012.

Closing the deal was subject to buying out the minority interests, which Eastplats had calculated to cost $25.7-million. Eastplats would also pay just under $20-million in finders’ fees and $3.8-million in transaction costs.

Eastplats shareholders would vote on the proposed transaction on February 5 and the deal was expected to close within three to six months.

Edited by Tracy Klückow
Creamer Media Contributing Editor

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