Eastern Platinum Restructures Transaction with Hebei Zhongbo

Eastern Platinum Ltd. (TSX:ELR) announced that it’s reached an agreement in principal to restructure the transaction under which Hebei Zhongbo Platinum Co. Ltd. will acquire Eastplats’ PGMs business, plus all the investments and loan agreements that Eastplats has with its subsidiaries.

As quoted in the press release:

As agreed, the parties would proceed forthwith to complete the purchase and sale of the Crocodile River Mine and associated inter-corporate loans for US$85,000,000, payable in cash on closing (estimated to occur on or before August 7, 2015). The sale of the balance of the Company’s remaining PGM business (the Spitzkop, Kennedy’s Vale and Mareesburg projects and inter-corporate loans) continues as previously disclosed for total consideration of US$140,000,000 and these transactions are estimated to close on or before October 31, 2015. The total consideration from the two transactions remains equal to US$225,000,000 as in the Original Acquisition.

The restructuring of the transaction as described above was determined to be in the best interests of the Company and HZP as the manner to best address timing issues with respect to various submissions on a regional asset basis that are required for regulatory approvals for the Original Acquisition as a whole.

Click here to read the full Eastern Platinum Ltd. (TSX:ELR) press release.