Anglo American PLC unit Anglo American Platinum Ltd., or Amplats, is selling its 33% interest in the Bafokeng Rasimone platinum mine joint venture in South Africa to its partner and the project's 67% owner, Royal Bafokeng Platinum Ltd., for 1.86 billion South African rand.
The company's unit Rustenburg Platinum Mines Ltd. accepted the offer and entered a sale and purchase agreement on July 4 with Royal Bafokeng subsidiary Royal Bafokeng Resources Pty. Ltd.
Amplats will retain its right to process 50% of the Bafokeng Rasimone concentrate for the life of the mine, while Royal Bafokeng will retain its termination right on the remaining 50% of the concentrate every five years, with the earliest termination being in August 2022.
Amplats CEO Chris Griffith said July 5 that the company will focus its capital on its own-managed mines and projects following the sale.
On completion, Royal Bafokeng Resources will make an upfront cash payment equivalent to the proceeds raised by Royal Bafokeng Platinum through a 5% capital issue totaling about 200 million rand plus any capital contributions from Rustenburg Platinum to the joint venture between this agreement and completion.
Meanwhile, the deferred consideration will be paid in three equal tranches after 1.5 years, 2.5 years and 3.5 years from completion. The transaction is expected to be effective in the third quarter.