Johannesburg - Sibanye Gold said on Monday it has resolved to provide US $200 million financial assistance to its indirect wholly-owned subsidiary, Thor US Holdco, in a bid to capitalise its wholly-owned subsidiary Stillwater Mining Company.
Sibanye said this was to enable Stillwater Mining Company to settle certain short-term debts following Sibanye's takeover of the United State's sole provider of platinum and palladium. In May, Sibanye and Thor US Holdco completed the acquisition of Stillwater Mining Company, for $2.2 billion (about R30 billion).
Stillwater, located in Montana in the United States, owns the highest grade Platinum Group Metals (PGM) mines in the world, producing approximately 550,000 ounces of grade 2E PGM per annum from two operating mines.
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The South African gold and platinum miner said the loan constituted direct and/or indirect financial assistance in terms of the provisions of the Companies Act. Sibanye said the board had satisfied itself that immediately after providing the financial assistance to Thor US Holdco, the company would then satisfy the solvency and liquidity test, having considered all reasonable financial circumstances.
Sibanye said the terms and conditions on which such financial assistance was to be given were fair and reasonable to Thor US Holdco Sibanye is the largest individual producer of gold in South Africa and is one of 10 largest gold producers globally.
- African News Agency (ANA)