Atlatsa and Rustenburg Platinum Mines (RPM) have entered into an agreement that will result in RPM acquiring the resources in Atlatsa’s Kwanda North and Central Block prospecting rights, for R300-million, or C$28-million.

Following implementation of this transaction, RPM will write off the R4.6-billion in debt owed to it by Atlatsa, including any current and further debt that may be incurred during the care and maintenance period of Bokoni mine, in Limpopo, until December 21, 2019.

Meanwhile, Atlatsa intends to delist from the TSX and the JSE and become a private company.

The company’s majority shareholder, ATH, will write off all debt owed to it by Atlatsa in exchange for becoming the controlling shareholder after Atlatsa’s delisting.

Atlatsa is initiating a compulsory repurchase of all common shares held by minority shareholders for R1 apiece.

The company’s share price rose 20% on Wednesday to 60c apiece, compared with the 50c apiece closing price on Tuesday.

BACKGROUND

RPM and Atlatsa have, throughout this year, continued to work towards the implementation of the 2017 restructure plan at the Bokoni mine.

Atlatsa in July 2017 announced a two-phased restructure plan for the mine, which comprised a care-and-maintenance strategy for the mine and a financial restructure plan for Atlatsa and its subsidiaries.

Bokoni was placed on care and maintenance on October 1, 2017.

RPM and Atlatsa continue to progress the various work streams required to be completed in terms of the agreement, while seeking the necessary regulatory approvals required for implementation purposes.

At this stage, RPM and Atlatsa expect the restructure plan to be completed during the first quarter of 2019.

Atlatsa’s care-and-maintenance costs for the quarter ended September 30 were $12.3-million, or about R122.5-million.

These include shaft and plant maintenance costs, pumping to prevent flooding of working areas, safety inspections, as well as general and administrative expenses

necessary to safeguard the Bokoni mine assets.