Atlatsa announces a conditional disposal of mineral rights to Anglo American Platinum

Resource Investing News

Atlatsa Resources (“Atlatsa” or the “Company”) (TSX: ATL; JSE: ATL) announces that it has entered into a letter agreement dated 21 July 2017 (“Letter Agreement”) with Anglo American Platinum Limited (“Anglo American Platinum”) outlining key terms agreed in relation to a two-phased transaction in terms of which Atlatsa will implement: a care and maintenance strategy for Bokoni …

Atlatsa Resources (“Atlatsa” or the “Company”) (TSX: ATL; JSE: ATL) announces that it has entered into a letter agreement dated 21 July 2017 (“Letter Agreement”) with Anglo American Platinum Limited (“Anglo American Platinum”) outlining key terms agreed in relation to a two-phased transaction in terms of which Atlatsa will implement:

  • a care and maintenance strategy for Bokoni Mine (“Phase 1”); and
  • a financial restructure plan for Atlatsa and its subsidiaries (“Atlatsa Group”) conditional upon Anglo American Platinum acquiring and including into its adjacent mining rights the resources specified in the Central Block and Kwanda North prospecting rights

Phase 2:

  • Anglo American Platinum acquiring and including into its adjacent mining rights the resources specified in the Kwanda North and Central Block prospecting rights for a cash consideration of ZAR 300 million (C$ 29 million) (“Asset Disposal”)
  • Subject to the implementation of the Asset Disposal, Anglo American Platinum to capitalise and/or write off all debt owing by Atlatsa Group and Bokoni Platinum Mines Proprietary Limited (“Bokoni”) to Anglo American Platinum, currently amounting to ZAR 4.2 billion (C$ 401 million), including such further debt incurred during the care and maintenance period until 31 December 2019 (“Debt Write Off”)
  • Atlatsa and Anglo American Platinum to retain their 51% and 49% respective shareholdings in the Bokoni joint venture (“Bokoni JV”)

Click here to read the full text release.

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