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.
I-Net Bridge For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field. Go to: http://www.inet.co.za
LEGAL DISCLAIMER: This Message Board accepts no liability of legal consequences that arise from the Message Boards (e.g. defamation, slander, or other such crimes). All posted messages are the sole property of their respective authors. The maintainer does retain the right to remove any message posts for whatever reasons. People that post messages to this forum are not to libel/slander nor in any other way depict a company, entity, individual(s), or service in a false light; should they do so, the legal consequences are theirs alone. Bizcommunity.com will disclose authors' IP addresses to authorities if compelled to do so by a court of law.