RPM writes off Atlatsa debt; Atlatsa to go private
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.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation