Anglo American PLC Anglo American Platinum agrees sale of Union mine (8936W)
15 February 2017 - 6:45PM
UK Regulatory
TIDMAAL
RNS Number : 8936W
Anglo American PLC
15 February 2017
15 February 2017
Anglo American Platinum agrees sale of Union
mine to Siyanda Resources
Anglo American plc ("Anglo American") notes Anglo American
Platinum's announcement of its agreement to sell its 85% interest
in the Union Mine in South Africa and 50.1% interest in MASA Chrome
Company to a subsidiary of Siyanda Resources ("Siyanda") ("the
Transaction"). Anglo American Platinum will retain the Mortimer
smelter operation.
Under the terms of the Transaction, the consideration comprises
an initial purchase price of R400 million (approximately $30
million) in cash, as well as a deferred consideration based on 35%
of cumulative distributable free cash flow paid annually as an
earn-out, for a period of ten years from the completion date of the
Transaction.
Siyanda will sell concentrate produced by the Union Mine to
Anglo American Platinum for a period of seven years from the
completion date of the Transaction on pre-agreed commercial terms,
thereafter Anglo American Platinum will toll treat concentrate for
the remaining life of Union Mine.
The Transaction is subject to conditions precedent typical of a
transaction of this nature, including regulatory approval in South
Africa, and is expected to complete during 2017.
The Transaction is a smaller related party transaction under UK
Listing Authority Listing Rule 11.1.10.R as the Public Investment
Corporation, a substantial shareholder of Anglo American, is a 30%
shareholder in Siyanda and Siyanda is the current 49.9% shareholder
in MASA Chrome, a subsidiary of Anglo American.
For further information, please contact:
Media Investors
UK UK
James Wyatt-Tilby Paul Galloway
james.wyatt-tilby@angloamerican.com paul.galloway@angloamerican.com
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968
Marcelo Esquivel 8718
marcelo.esquivel@angloamerican.com Trevor Dyer
Tel: +44 (0)20 7968 8891 trevor.dyer@angloamerican.com
South Africa Tel: +44 (0)20 7968
Pranill Ramchander 8992
pranill.ramchander@angloamerican.com Sheena Jethwa
Tel: +27 (0)11 638 2592 sheena.jethwa@angloamerican.com
Ann Farndell Tel: +44 (0)20 7968
ann.farndell@angloamerican.com 8680
Tel: +27 (0)11 638 2786
Notes to editors:
Anglo American is a globally diversified mining business. Our
portfolio of world-class competitive mining operations and
undeveloped resources provides the raw materials to meet the
growing consumer-driven demands of the world's developed and
maturing economies. Our people are at the heart of our business. It
is our people who use the latest technologies to find new
resources, plan and build our mines and who mine, process and move
and market our products - from diamonds (through De Beers) to
platinum and other precious metals and copper - to our customers
around the world.
As a responsible miner, we are the custodians of those precious
resources. We work together with our key partners and stakeholders
to unlock the long-term value that those resources represent for
our shareholders, but also for the communities and countries in
which we operate - creating sustainable value and making a real
difference.
www.angloamerican.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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