RBPlat receives R2bn upfront payment from Triple Flag
JSE-listed Royal Bafokeng Platinum (RBPlat) has the received the upfront cash prepayment of $145-million, or R2.1-billion, from Triple Flag Mining Finance Bermuda.
This relates to a gold streaming agreement entered into in October last year, whereby RBPlat would deliver gold to Triple Flag from its South African mining operations.
The prepayment proceeds have been used to fully settle the R1.8-billion that was owing to Rustenburg Platinum Mines, for the acquisition of the remaining 33% interest in the Bafokeng Rasimone Platinum Mine joint venture it did not previously own.
Triple Flag will pay a further 5% of the gold spot price to RBPlat for each gold ounce delivered under the agreement.
RBPlat produces gold as a by-product of platinum group metals production, with gold accounting for about 3% of its revenue.
Triple Flag will receive 70% of RBPlat’s gold production up to 261 000 oz, and after the delivery of 261 000 oz, Triple Flag will receive 42% of gold production for the remaining life-of-mine.
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