The transaction which was concluded with Anglo Platinum subsidiary Rustenburg Platinum Mines Limited, makes provision for Northam’s acquisition of a portion of the mining right and associated resource from the Amandelbult mine on the north-western boundary of Northam’s Zondereinde mine.
The transaction also makes provision for Northam’s acquisition of the land overlying the resource, in exchange for the disposal of a portion of the Zondereinde mining right on the north-western corner of the Zondereinde property.
Paul Dunne, chief executive, Northam said, “The transaction brings flexibility and optionality to the mining operations at Zondereinde. The acquired resource is of high quality, is well understood by Northam and allows us to better leverage the existing Zondereinde infrastructure. The additional resource also enables Northam to continue mining higher-grade Merensky ore for a longer period, with relatively low incremental capital expenditure. Northam is confident that the transaction will add sustainable shareholder value, unlocking a large resource in a capital efficient manner. The transaction positions Zondereinde on a similar long-term footing as our Booysendal operation.”