JOHANNESBURG (miningweekly.com) – JSE-listed Northam Platinum has acquired platinum miner Aquarius Platinum’s idled Everest platinum mine in a R450-million deal that could potentially unlock roughly 60-million platinum-group metal ounces in a capital efficient manner.

Northam planned to consolidate the mine, which was placed on care and maintenance in June 2012 in prevailing depressed market conditions, with its adjacent Booysendal resource, on the southern portion of the eastern limb of the Bushveld Complex, in Mpumalanga.

CEO Paul Dunne said the absorption of Everest would provide a platform for the development of Northam’s Booysendal Central and South orebodies, market conditions permitting.

Aquarius’ disposal of the operation also presented a “valuable opportunity”, as the proceeds would increase the company’s net cash and strengthen its balance sheet in a “somewhat challenging market", said Aquarius CEO Jean Nel.

It would also enable Aquarius to narrow its focus to its core operations at Kroondal and Mimosa and associated projects.

“At the same time, the potential restarting of the mine is expected to bring benefits to local communities, both directly in terms of job creation and corporate social investment, and indirectly through the associated benefits of economic activity in the region,” he added.

Northam would pay Aquarius R400-million by June 26 for the Everest assets, which included a concentrator plant with a nameplate throughput capacity of 250 000 t/m, a chrome spiral recovery plant, a tailings dam and three decline shaft systems, followed by an additional R50-million payment for the Everest mining right in a secondary deal.

The two-part transaction remained subject to the fulfilment of certain conditions, including a new lease agreement with the Bakone Ba Phetla Communal Property Association, which owned a portion of the land Everest occupied, and approvals by the relevant competition authorities.

The sale of the mining right would require the Mineral Resources Minister’s consent and the fulfilment or waiver of the first conditions.

Northam would assume responsibility for carrying out the care-and-maintenance services and providing contract mining services at the Everest mine during the period between the approval by the competition authorities and the Ministerial consent.