Anglo Platinum is pleased to announce that it is at an advanced stage of negotiating a BEE transaction which if successfully concluded will see the Bakgatla-Ba-Kgafela Traditional Community (the Bakgatla) acquire a 15% interest in Anglo Platinum's Rustenburg Platinum Mines Union section (Union) and interests in the prospecting rights of the Rooderand 46 JQ, portion 2 (Rooderand) and Magazynskraal 3 JQ (Magazynskraal) properties.
In terms of the transaction Anglo Platinum intends to:
convert an existing royalty agreement with the Bakgatla over a portion of the Union mining area which, in addition to the payment by the Bakgatla of a cash consideration of R420 million funded by commercial debt, will result in the Bakgatla holding a 15% equity stake in the Union mine and concentrator complex,
cede a 26% interest in Magazynskraal and establish an exploration joint venture which will afford the Bakgatla the opportunity to increase their participation interest in the property by funding or facilitating the exploration thereof, and
cede a 55% interest in the prospecting rights of Rooderand to the Bakgatla which will be used as security for a R45 million loan to be made by Anglo Platinum to the Bakgatla to repay land debt and fund community projects.
The Bakgatla-Ba-Kgafela Traditional Community comprises some 350 000 people resident in the greater Pilanesburg area adjacent to Union and comprise approximately 47% of Union's labour force. The Bakgatla hold mineral interests over a portion of the Union mining area and have received royalty payments from Anglo Platinum since 1982. The Bakgatla are the beneficial owners of portion 1 of Rooderand 46 JQ and have an existing exploration joint venture with Barrick Gold Corporation on properties contiguous to Magazynskraal.
The Bakgatla have convened a members meeting for 25 November 2006 to consider and ratify the terms of the transaction.
For further information please contact
Trevor Raymond
+27 (0)11 373 6462