Northam acquires the Maroelabult assets for R20 million
NORTHAM PLATINUM LIMITED
Incorporated in the Republic of South Africa
(Registration number 1977/003282/06)
JSE share code: NHM ISIN code: ZAE000030912
Debt issuer code: NHMI
Bond code: NHM002 Bond ISIN: ZAG000129024
Bond code: NHM006 Bond ISIN: ZAG000158577
Bond code: NHM007 Bond ISIN: ZAG000158593
Bond code: NHM008 Bond ISIN: ZAG000158858
Bond code: NHM009 Bond ISIN: ZAG000158866
Bond code: NHM010 Bond ISIN: ZAG000159229
Bond code: NHM011 Bond ISIN: ZAG000159237
Bond code: NHM012 Bond ISIN: ZAG000160136
Bond code: NHM013 Bond ISIN: ZAG000162181
(“Northam” or the “company”)
NORTHAM ACQUIRES THE MAROELABULT ASSETS FOR R20 MILLION
Northam is pleased to announce that its wholly owned subsidiary, Eland Platinum Proprietary Limited
(“Eland”), has entered into an agreement with Barplats Mines Proprietary Limited, a subsidiary of Eastern
Platinum Limited, to purchase the Maroelabult assets (“Maroelabult assets”) including the mining and
surface rights, infrastructure, equipment and associated fixed and movable property, for a cash
consideration of R20 million (“purchase consideration”), (“transaction”). Upon implementation of the
transaction, Eland will assume the environmental rehabilitation liabilities associated with the Maroelabult
assets in accordance with the transaction terms.
The transaction and payment of the purchase consideration are subject to the fulfilment of certain
conditions precedent typical for a transaction of this nature including, inter alia, consent by the Minister of
Mineral Resources and Energy in terms of section 102 of the Mineral and Petroleum Resources
Development Act, No. 28 of 2002 to incorporate the relevant mining right portions into the contiguous
mining right held by Eland.
The property on which the Maroelabult assets are located lies immediately west of Eland mine and the
UG2 orebody on these two properties is analogous. The Maroelabult assets include a measured and
indicated resource of 231 744 oz 4E and a proved and probable reserve of 188 357 oz 4E. The surface
and underground infrastructure included in the Maroelabult assets will positively impact the overall build
program of Eland mine and provide additional planning optionality.
In order to facilitate an efficient transfer of ownership, Eland will be granted access to the Maroelabult
assets from 1 November 2019 and will assume responsibility for the care and maintenance costs of the
Maroelabult assets with effect from this date, amounting to approximately R6.6 million per annum.
Northam’s Chief Executive Officer, Paul Dunne, said “Northam is looking forward to extracting the
synergistic benefits between the Maroelabult assets and Eland and we are confident that the Maroelabult
assets will make a positive contribution towards Eland’s ongoing development.”
The transaction falls below the threshold for categorisation in terms of the JSE Limited Listings
Requirements and therefore this announcement is provided for information purposes only.
29 October 2019
Corporate Advisor, Sponsor and Debt Sponsor
Cliffe Dekker Hofmeyr Inc.
Date: 29/10/2019 09:30:00
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