Johannesburg – Dual-listed Sibanye says it has completed
the syndication of $2.65 billion in bridging facilities for its purchase of the
Stillwater Mining Company in the US.
Sibanye said in December it was set to buy the only US
miner of platinum group metals for R30 billion in a bid to transform into a
premier, global precious metals miner, with a balanced portfolio of gold and
platinum group metals assets, at a favourable point in the commodity cycle.
Sibanye CEO Neal Froneman said at the time that the deal was
consistent with the company’ strategy of “creating superior value for all of
our stakeholders, by enhancing the cash flow generation and growth profile of
its portfolio, underpinning its strategy of paying sustainable, industry
The purchase is an opportunity for Sibanye to acquire
high-quality, low-cost PGM assets which offer near-term organic growth through
the anticipated ramp-up of Stillfontein’s Blitz Project.
Stillwater is the only US miner of PGM and the largest
primary producer of PGM outside of South Africa and the Russian Federation.
Located in Montana, US, Stillwater’s operations consist of two underground
PGM mines (the Stillwater Mine and East Boulder Mine), the Blitz Project and
the Columbus metallurgical complex.
On Monday, the company said it had closed the syndication
of the bridge facilities, underwritten by Citi and HSBC.
It notes the syndication was oversubscribed by more than
$1 billion.
CEO Neal Foneman says “it is pleasing to note the strong
support for the Transaction from a significant number of leading banks. This is
a clear vote of confidence on the merits of the Transaction, following detailed
due diligence by the syndicate banks.”
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