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Ga Phasha transfer to Amplats starts

12th December 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – JSE-, TSX-V- and NYSE-listed Atlatsa Resources’ transfer of its Ga Phasha mineral property and its stake in the Boikgantsho project to Anglo American Platinum (Amplats) has started, following the Department of Mineral Resources’ execution of the amended mineral titles rights.

The platinum-group metals (PGM) miner’s R1.7-billion sale and transfer to Amplats formed part of Atlatsa’s restructuring programme to reduce its existing R3.3-billion debt to Amplats.

Atlatsa and Amplats now planned to conclude and implement the new debt and working capital facilities agreed between the two parties.

Mining Weekly Online previously reported that Amplats would also subscribe for 125-million new common shares in Atlatsa for an aggregate subscription price of R750-million, the proceeds of which would be used by Atlatsa to further reduce its debt to Amplats to about R830-million.

Under the terms of the deal, Amplats would further provide Atlatsa with an additional debt facility of about R720-million, bringing the total debt facility up to a limit of R1.55-billion, which was repayable between 2018 and 2020.

Atlatsa said in a statement to shareholders that the implementation of these transactions would result in a material reduction in its balance sheet debt position and its cost of borrowing.

Edited by Creamer Media Reporter

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