JOHANNESBURG (miningweekly.com) – TSX-listed Platinum Group Metals (PTM) on Thursday announced that the due diligence and the execution of binding legal agreements to sell Maseve Investment to Royal Bafokeng Platinum (RBPlat) had been concluded.
The $74-million deal will see RBPlat pay Maseve an initial $58-million in cash to acquire the concentrator plant and certain surface assets of the Maseve mine.
RBPlat paid a R41-million ($3-million) deposit in escrow in October.
The closing of the first step remained subject to RBPlat shareholder approval at a meeting scheduled for November 30, as well as the approval of the South African Competition Commission.
The second step to acquire 100% of the issued equity in Maseve by way of a scheme of arrangement for $4-million in cash and about $12-million in RBPlat ordinary shares will be subject to certain requirements, including the approval of the South African Department of Mineral Resources and the approval of Maseve’s 17.1% minority shareholder.
The proceeds of the Maseve sale will be used to pay down a substantial portion of PTM’s debt.