30th Jan 2014 11:00
LONDON (Alliance News) - Aquarius Platinum Limited said Thursday that it has agreed to dispose of two non-core assets that do not form part of the Group's planned production profile.
Aquarius said it has agreed terms to dispose of 100% of the shares held in its indirect subsidiary, C&L Mining and Resources (Pty) Limited to Pilanesberg Platinum Mines (Pty) Ltd, a subsidiary of Sedibelo Platinum Mines Limited (previously Platmin Limited) for a total sale consideration of USD30 million in cash. The material asset of C&L is a prospecting right known as Kruidfontein in which C&L has a 90% economic benefit.
Upon completion of the sale, Aquarius will receive USD16.2 million before tax in consideration for its economic interest in the prospecting right with the remaining USD10.8 million (before tax) due to the original vendors of the right.
In terms of an agreement with the original vendors of the Kruidfontein prospecting right, Aquarius may elect to retain the remaining USD10.8 million (less any tax payable), in return for an issue of shares in Aquarius, of same value, at the time the sale becomes unconditional, resulting in net cash inflows of USD27 million before tax for Aquarius.
Aquarius has also agreed terms to dispose of all its indirect interests in Blue Ridge Platinum (Pty) Ltd and Sheba's Ridge Platinum (Pty) Ltd to a consortium led by the China National Arts & Crafts (Group) Corporation for a total consideration of USD37 million in cash, of which USD4.3 million will be lent and advanced by Ridge Mining (Pty) Ltd to Blue Ridge for a period of 2 years from the closing date, being the date on which the last condition precedent to the sale agreement will be fulfilled.
The sale agreement is subject to a number of conditions precedent, primarily: Chinese Government approvals, South Africa Competition Commission approval and a number of DMR regulatory approvals. The outside date for the fulfilment of the conditions precedent has been fixed at 30 June 2014, but may be extended if required, by agreement between the parties.
Copyright RTT News/dpa-AFX
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