Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – Emerging platinum miner Platfields on Friday said it had been approached by a third party and had started negotiations for the acquisition of substantial mining assets.
The company said that, if successful, the acquisition would result in a reverse listing, a change in control and in the board, as well as cash flow being injected into the group.
Platfields last month announced that it had been compelled to put exploration activity largely on hold during the financial year ended February 28, citing its inability to attract investment interest owing to the “turbulence” currently experienced in the South African mining industry – particularly in the platinum sector.
The company on Friday also noted that petitions had been made to the Minister of Mineral Resources for the validity and security of tenure of certain of the group’s prospecting rights that had lapsed subsequent to the year-end.
Platfields’ exploration portfolio included the Limpopo-based Leeuwkop project, which comprised a single new order platinum-group metals (PGM) prospecting right, that was estimated to be worth R44-million.
The company also held prospecting rights for PGMs at the Berg project, in Mpumalanga, which was valued at R32-million.