Anglo Platinum Buys Anooraq Assets to Reduce Debts Owed
Anglo American Platinum Ltd. (AMS), the world’s largest producer of the metal, agreed to buy two projects from Anooraq Resources Corp. (ARQ), which will use the $213 million in proceeds to cut its debt to Amplats.
Amplats will buy the Boikgantsho project and the eastern section of the Ga-Phasha project, Anooraq said in a statement today. Anooraq will still hold a 51 percent stake in the greater Bokoni Platinum Mine, with Amplats retaining a 49 percent interest.
“This transaction provides Amplats with access to mineral properties that provide synergies with our operations at Mogalakwena and Twickenham,” Amplats Chief Executive Officer Neville Nicolau said in the statement.
As part of the reorganization, the two companies agreed to halt interest on Anooraq’s debt, resulting in a $37.5 million saving for Anooraq. All debt owed to Amplats will also be consolidated into one facility, it said.
Anooraq will use the savings and proceeds to reduce its debt to Amplats by 66 percent to about $125 million.
Anooraq rallied 14 percent to 4.63 rand, the highest since Oct. 14, by 4:52 p.m. in Johannesburg.
To contact the reporter on this story: Janice Kew in Johannesburg at jkew4@bloomberg.net
To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net
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