Platinum group metals (PGMs) miner Atlatsa Resources Corporation has secured approval from stakeholders to proceed with SAR1.7bn ($171.1m) sale of eastern section of the Ga-Phasha mineral property to Anglo American Platinum (Amplats).
The sale of 31.4-million PGM ounces producing section is a part of restructuring plan that the company proposed during the special general meeting held on 28 June 2013.
The western section of Ga-Phasha property located in South Africa is expected to be consolidated into the Bokoni mine lease area, where the company has commenced opencast mining operations on the Merensky reef.
In addition, the stakeholders have also approved the issuance of 125-million new Atlatsa common shares to Amplats for SAR750m ($75.5m). With these proceeds, the company aims to cut down the existing debt.
Atlatsa chief commercial officer Joel Kesler said that the developments would allow the company to revive balance sheet and place it on a potential financial position to deliver its 2020 operational strategy on a fully financed basis.
"This, together with continuous operational improvements at the Bokoni platinum mine, places us in an advantageous position to continue reducing unit operating costs and improving the company’s financial position and performance going forward," added Kesler.
With these transactions, the company has secured an option to raise new debt facility from Amplats of up to SAR1.55bn ($156m) at an interest rate of 2% a year through to 2020.