Anglo Platinum buys Atlatsa asset

Anglo American Platinum (Amplats) will buy part of a local mine from Atlatsa Resources for R1.7 billion and subscribe for shares in the company. The transactions would reduce the R3.3bn that Atlatsa owed Amplats to R830 million, the platinum unit of Anglo American said in a statement yesterday. Amplats will buy the eastern section of the Ga-Pasha mine, which is adjacent to its Twickenham operation in Limpopo, and will subscribe for 125 million new Atlatsa shares for R6 each. The Bokoni platinum mine, which the companies co-own, would increase output to 160 000 tons monthly from 100 000 tons, Amplats said. “Amplats will retain a 22.6 percent ordinary equity interest in Atlatsa,” the company said. Amplats would also provide Atlatsa with an additional debt facility of about R720m, taking the total amount to R1.55bn, it said. The debt would be repayable between 2018 and 2020. Atlatsa shares surged as much as 30 percent before closing 5.5 percent higher at R2.11 on the JSE yesterday. Amplats declined 3.74 percent to close at R386.90. – Bloomberg