Anglo American Platinum Ltd. (AMS), the world’s biggest producer of the metal, will buy part of a South African mine from Atlatsa Resources Corp. (ATL) for 1.7 billion rand ($183 million) and subscribe for shares in the company.
The transactions will reduce the 3.3 billion rand that Atlatsa owes Anglo American Plc (AAL)’s platinum unit to 830 million rand, the Johannesburg-based company known as Amplats said in a statement today.
Amplats will buy the eastern section of the Ga-Pasha mine, which is adjacent to its Twickenham operation in the northernmost Limpopo province in South Africa, and will subscribe for 125 million new Atlatsa shares for 6 rand each. The companies both own the Bokoni platinum mine, which will increase output to 160,000 metric tons monthly from 100,000 tons now, it said.
“Anglo American Platinum will retain a 22.6 percent ordinary equity interest in Atlatsa (ATL),” the company said.
Amplats will also provide Atlatsa with an additional debt facility of about 720 million rand, taking the total amount to 1.55 billion rand, it said. The debt will be repayable between 2018 and 2020. It will also give Atlatsa a working-capital facility of 90 million rand.
Atlatsa shares surged as much as 30 percent to 2.60 rand and traded 5.5 percent higher at 2.11 rand by 1:30 p.m. in Johannesburg. Amplats declined 3.7 percent to 386.89 rand, the lowest intraday level since Dec. 4.
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