JOHANNESBURG - Canada-headquartered Eastern Platinum said on Tuesday its subsidiary Barplats Mines had entered into an agreement to sell the mining rights, immovable property, infrastructure and equipment of the Maroelabult resource property located near Brits in South Africa to Eland Platinum.
Eastplats, which holds interests in platinum projects located in South Africa, said the consideration to be received was R20 million (US$1.4 million), the assumption of the rehabilitation obligation and immediate assumption of the care and maintenance costs (purchase price) subject to representations and warranties by both parties.
"The purchase price is payable and enforceable on closing the transaction following the transfer of legal title and the completion of the various legal and regulatory obligations required in South Africa which may take up to or over one year," it said.
Barplats would obtain immediate benefits by reducing its ongoing costs, Eastplats added. Eland, without cost to Barplats, would be appointed to render the required care and maintenance services for the assets until closing the transaction.
"Eastplats is pleased to close this transaction with Eland and to monetize Maroelabult," CEO Diana Hu said.