The independent integrated PGM producer also stated that the acquisition would be for a total cash purchase consideration of 450 million rand.
“The consolidation of Everest provides an excellent platform for Northam to develop the Booysendal Central and Booysendal South orebodies. These assets are an ideal geographical and operational fit for Northam’s Booysendal division,” said Paul Dunne, CEO of [DATA NHM:Northam].
“Northam is confident that this transaction will add significant shareholder value, unlocking a resource of approximately 60 million PGM ounces in an extremely capital efficient manner.”
The transaction is subject to the fulfilment of several conditions, including that Northam will acquire the new order mining right in respect of the Everest mine for a cash purchase consideration of 50 million rand, among others.
[DATA AQP:Aquarius] CEO Jean Nel said, “For AQP, the proceeds from the disposal will be used to increase AQP’s net cash and to strengthen the balance sheet in a somewhat challenging market, and is in line with our stated objective of focussing on our core operations at Kroondal and Mimosa and associated projects.”
“And, at the same time, the potential re-starting of the mine is expected to bring benefits to local communities, both directly in terms of job creation and corporate social investment, and indirectly through the associated benefits of economic activity in the region,” he added.
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He also stated that management’s view as AQP was that the sale of Everest, which is superfluous to the company’s present business plan, delivers the most appropriate realisation of value from the Everest assets.