JOHANNESBURG (miningweekly.com) – Impala Platinum (Implats) on Friday concluded a nonbinding term sheet with the Zimbabwe Ministry of Youth Development, Indigenisation and Empowerment for the sale of a 51% stake of its Zimbabwe subsidiary Zimplats to various indigenous entities for $971-million.
Zimplats agreed to sell a 31% stake to the National Indigenisation and Economic Empowerment Fund and 10% each to the Zimplats Mhondoro-Ngezi Chegutu Zvimba Community Share Ownership Trust and an employee share ownership trust.
Zimplats would retain a 49% shareholding.
“This agreement underlines our commitment to good corporate citizenship and lays the foundation for the creation of a sustainable Zimbabwean platinum mining company capable of attracting the investment needed to deliver future benefits to our shareholders, the people of Zimbabwe, our employees and the local community,” said Implats CEO Terence Goodlace.
Zimplats, as part of corporate social investment, would provide $10-million seed capital to the community trust, $3.3-million of which was paid in June last year, with two further instalments payable in 2013 and 2014.
The group also offered the new owners vendor funding, at an interest rate of 10% a year, repayable from 85% of the dividends of the indigenisation shares.
Goodlace pointed out, however, that the parties were required to contribute their respective pro rata share should future funding be raised by equity subscriptions, or the shareholdings would be diluted.
The transaction remained subject to conditions precedent, which were expected to be fulfilled by June.