Impala Platinum, the world's second-largest producer of the metal, has bought a minority stake for $30m in the undeveloped Waterberg prospect owned by Canada's Platinum Group Metals.
Nico Muller, CEO: Implats
The acquisition fits in with new CEO Nico Muller's stated intention of looking for large, shallow resources to offset the risk of operating deep-level platinum mines.
"We have made it a priority to increase Implats's strategic optionality and this investment represents an important step to create the potential to develop a significant, lower-cost, lower-risk resource," Muller said in a statement.
Implats is buying the 15% stake in the Waterberg prospect on the Northern Limb of the Bushveld Igneous Complex for cash from Platinum Group Metals, which has just sold its only operating asset to Royal Bafokeng Platinum, and Japan Oil, Gas and Metals National Corporation (Jogmec), with an agreement to take control of the project after a definitive feasibility study on it.
"Waterberg represents a large-scale platinum group metal resource with an attractive risk profile given its shallow nature. This facilitates fully mechanised production with the potential for the project to have among the lowest operating costs in the PGM (platinum group metals) sector," Implats said.
Implats will from now be closely involved in the definitive study of the Waterberg prospect and will then have 90 working days once the study is complete to decide whether it will take up a 50.01% stake in the project by buying a further 12.19% from Jogmec and investing $130m into developing a mine at Waterberg for a 22.18% stake in the project which Implats will manage.
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This 30 million deal can be a great way to invest the country’s economy. I think that ordinary people will doubtfully befit from this money and they would have to still use some help of the North'n'Loans is they sometimes have the issues with the money. For example, if the country has some economics issues they would have to entirely remake the whole budgeting system. But if the ordinary people have some monetary problems they can easily turn to the direct lender online fast and easy.