Wrap Text
Aquarius enters agreement to sell Everest mine to Northam for R450 million
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
ISIN Code: BMG0440M1284
JSE Share Code: AQP
AQUARIUS ENTERS AGREEMENT TO SELL EVEREST MINE TO NORTHAM FOR R450 MILLION
Aquarius Platinum Limited (AQP) is pleased to advise that its subsidiary, Aquarius
Platinum (South Africa) (Pty) Ltd (AQPSA), has entered into an agreement to sell AQPSA’s
entire interest in the Everest mine and related mining and processing infrastructure and
immovable properties (Everest) to Northam Platinum Limited (Northam) (together the
“Disposal”), for an aggregate consideration of R450 million, payable in cash. Everest mine
was placed on care-and-maintenance in June 2012 in light of market conditions prevailing
at that time. As at 30 June 2014 the gross assets of Everest were US$36 million and the
loss before tax attributable to Everest was $7.2 million.
The Disposal is to be completed in two parts:
- Northam will pay AQPSA R400 million on 26 June 2015 to acquire the concentrator
plant and other mining assets of the Everest Mine. This payment is conditional on
approval of the Competition Commission and the Bakone Ba Phetla Communal
Property Association agreeing to cancel the existing lease of its immovable
property to AQPSA and entering into a new written lease with Northam by 23 June
2015 (Competition Approval);
- Northam will pay AQPSA R50 million to acquire the Everest mining right (and all
the obligations of AQPSA in respect of that right). This payment is conditional
upon the conditions to the first part of the sale being fulfilled and the Minister of
Mineral Resources granting consent to the transfer of the Everest mining right to
Northam in terms of section 11 of the Mineral and Petroleum Resources
Development Act (Ministerial Consent) within three years of the signing of the sale
agreement.
Should the Ministerial Consent not be obtained in time the first part of the Disposal will
not be unwound.
Northam will assume responsibility for carrying out the care and maintenance services
and providing contract mining services at the Everest Mine during the period between the
date of grant of the Competition Approval and the date of Ministerial Consent.
AQP is in discussions with the UK Listing Authority regarding the classification of the
Disposal as either a class 1 or a class 2 transaction under Chapter 10 of the Listing Rules. If
the Disposal is a class 1 transaction pursuant to the Listing Rules, the Disposal will require
the approval of AQP’s shareholders. AQP will announce the outcome of these discussions
once they have been concluded.
AQP CEO Jean Nel noted that the sale presents a valuable opportunity to a broad range of
stakeholders. “For AQP, the proceeds from the Disposal will be used to increase AQP’s net
cash and to strengthen the balance sheet in a somewhat challenging market, and is in line
with our stated objective of focussing on our core operations at Kroondal and Mimosa
and associated projects. And, at the same time, the potential re-starting of the mine is
expected to bring benefits to local communities, both directly in terms of job creation and
corporate social investment, and indirectly through the associated benefits of economic
activity in the region.”
Jean Nel added that, in reaching its decision to sell Everest, AQP considered the capital
that would be required to restart mining at Everest on a stand-alone basis, the potential
for AQP to combine Everest with other operations in the area, the metal prices that
would be required to deliver an appropriate risk-adjusted return to invest the capital and
alternative investment propositions available to AQP.
“Management’s view as AQP was that the sale of Everest, which is superfluous to our
present business plan, delivers the most appropriate realisation of value from the Everest
assets.”
About Aquarius Platinum Group
The Aquarius Platinum Group is a focused, independent, primary producer of the
platinum group metals, which comprise platinum (Pt), palladium (Pd), rhodium (Rh),
osmium (Os), ruthenium (Ru) and iridium (Ir). The Aquarius Platinum Group has assets in
South Africa’s PGM-bearing mineralised zone, the Bushveld Complex, and the Great Dyke
Complex in Zimbabwe.
Forward-looking statements
This announcement includes statements that are, or may be deemed to be, "forward-
looking statements". These forward-looking statements can be identified by the use of
forward-looking terminology, including the terms "believes", "estimates", "plans",
"projects", "anticipates", "expects", "intends", "may", "will", or "should" or, in each case,
their negative or other variations or comparable terminology, or by discussions of
strategy, plans, objectives, goals, future events or intentions. These forward-looking
statements include all matters that are not historical facts. They appear in a number of
places throughout this document and include, but are not limited to, statements
regarding AQP's intentions, beliefs or current expectations concerning, among other
things, AQP's results of operations, financial position, prospects, growth, strategies and
the industry in which it operates. By their nature, forward-looking statements involve risk
and uncertainty because they relate to future events and circumstances. Forward-looking
statements are not guarantees of future performance and the actual results of AQP's
operations and financial position, and the development of the markets and the industry in
which AQP operates, may differ materially from those described in, or suggested by, the
forward-looking statements contained in this document. In addition, even if the results of
operations, financial position and the development of the markets and the industry in
which AQP operates are consistent with the forward-looking statements contained in this
document, those results or developments may not be indicative of results or
developments in subsequent periods. A number of factors could cause results and
developments to differ materially from those expressed or implied by the forward-looking
statements including, without limitation, general economic and business conditions,
industry trends, competition, changes in regulation, currency fluctuations, changes in its
business strategy, political and economic uncertainty and other factors discussed in this
announcement. Forward-looking statements may, and often do, differ materially from
actual results. Any forward-looking statements in this document speak only as of their
respective dates, reflect AQP's current view with respect to future events and are subject
to risks relating to future events and other risks, uncertainties and assumptions relating
to AQP's operations, results of operations and growth strategy. Subject to the
requirements of the Financial Conduct Authority, the London Stock Exchange, the Listing
Rules and the Disclosure and Transparency Rules (and / or any regulatory requirements)
or applicable law, AQP explicitly disclaims any obligation or undertaking publicly to
release the result of any revisions to any forward-looking statements in this document
that may occur due to any change in AQP's expectations or to reflect events or
circumstances after the date of this document. No statement in this document is
intended as a profit forecast or profit estimate, nor should any statements be interpreted
to mean that earnings or earnings per share will necessarily be greater or lesser than
those for the relevant preceding financial periods of AQP.
For further information please contact:
In Australia:
Willi Boehm
Aquarius Platinum Corporate Services Pty Ltd
+61 8 9367 5211
In South Africa:
Jean Nel
Aquarius Platinum (South Africa) (Pty) Ltd
+27 12 001 2001
or visit: www.aquariusplatinum.com
10 February 2015
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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