Anooraq gets lifeline from Amplats
Johannesburg - Anglo Platinum [JSE:AMS] the world’s largest producer of the precious metal, has agreed to help boost production at Anooraq Resources [JSE:ARQ] Bokoni Platinum Mine through a new R2.6bn capital development programme.
This capital means the mine can now target 245 000 ounces by 2016, an increase of 100 000 ounces.
The new spending on the mine forms part of a restructuring, refinancing and recapitalisation deal unveiled by the companies on Thursday.
Essentially a lifeline for Anooraq, the new strategic plan ensures that Amplats shares in the mine’s potential, which is promising given longer-term prospects for the platinum price.
A series of interrelated transactions will see Amplats acquire Anooraq’s Boikgantsho project and the eastern section of the Ga-Phasha project for R1.7bn.
While this will be put towards repaying Anooraq’s R3bn debt to Amplats, the smaller company will still recieve up to R1.3bn under a consolidated debt facility.