RBPlat’s Maseve buy ‘will cut time’
Royal Bafokeng Platinum will ask shareholders to support the issuing of shares to fund the start of the Maseve purchase
Royal Bafokeng Platinum (RBPlat) outlined its rationale for raising as much as R1bn to buy the Maseve concentrator, saying it would add value to its new Styldrift mine next door.
RBPlat will ask shareholders on the morning of November 30 for 75% support for the issuing of shares to fund the first phase of the purchase of the Maseve plant and mine.
The seller of Maseve is Canada’s deeply indebted Platinum Group Metals, which was unable to make a success of the brand new mine, which had a net asset value at the end of August of R3.6bn, but had by then posted a net loss for the preceding 12 months of R1.38bn.
The transaction would give RBPlat a concentrator to treat Styldrift ore in the first phase of the mine’s development, accelerating the time of ore processing and so "reducing both the capital outlays and the technical risk associated with the construction of a new plant".
The plant is the first phase of a two-part deal, the second part of which entails buying the Maseve joint venture company owned by Platinum Group Metals and a Wesizwe Platinum subsidiary, giving it control of underground assets.
RBPlat will buy the surface infrastructure for $58m and the full ownership of the jointly held Maseve for $12m.
There is a further $4m for a rehabilitation fund set up by the Canadian company.
The transaction is highly conditional, with approval needed from Mineral Resources Minister Mosebenzi Zwane, the competition authorities, shareholders of both companies as well as those to whom Platinum Group Metals owes $89m.