Anglo American Platinum Sells Union Mine JV, Masa Chrome to Siyanda Resources

By Razak Musah Baba

LONDON--Anglo American Platinum Ltd. (AMS.JO) Wednesday said it is selling its interests in the Union Mine joint venture and Masa Chrome to Siyanda Resources Proprietary Ltd., for up to 6.4 billion South African rand ($475.7 million).

The South African platinum producer said Wednesday that its subsidiary Rustenburg Platinum Mines Ltd., has entered into a sale and purchase agreement to sell its entire 85% interest in Union Mine and its 50.1% interest in MASA Chrome Company Proprietary Ltd., to a subsidiary of Siyanda

The transaction includes an initial amount of ZAR400 million, payable in cash, as well as a deferred consideration, the company said. The deferred consideration has a cap of ZAR6.0 billion, it said.

The remaining 15% of Union Mine is owned by the Bakgatla-Ba-Kgafela traditional community. The Masa Chrome plant is a joint venture with Siyanda Resources.

Anglo American Platinum said it intends to use the proceeds to reduce debt.

Also as part of the deal, Siyanda will sell concentrate produced by the Union Mine to Anglo American Platinum for a period of seven years.

-Write to Razak Musah Baba at [e-mail]; Twitter: @Raztweet

(END) Dow Jones Newswires

February 15, 2017 03:08 ET (08:08 GMT)

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