ROYAL Bafokeng Platinum (RBPlat) has concluded a transaction in which it would buy the concentrator plant and certain surface assets of Platinum Group Metals’ Maseve mine. The deal carries a consideration of $70m and includes shares and shareholder claims.
Maseve would provide RBPlat with immediate access to a concentrator plant which would allow it to treat ore mined from its Styldrift I project. It would also provide RBPlat with “… strategic flexibility to potentially extend the life of mine of the South Shaft Merensky operations”. The Maseve mine was designed for output of 250,000 ounces/year 4E.
The key benefit of the acquisition is that it removes the risk of having to build a new concentrator whilst simultaneously brining forward mining – and crucially, the cash flow – from Styldrift 1. When fully commissioned, the Styldrift project is forecast to double RBPlat’s platinum group metal production to 600,000 oz/year.
The transaction requires approval for a change of control which is granted by the Department of Mineral Resources in terms of Section 11 of the Minerals & Petroleum Resources Development Act.