Anglo Platinum and Cluff Mining plc announced on Friday that they had finalised an agreement to establish a joint venture for developing the Sheba’s Ridge platinum project in Mpumalanga.
Representative Mike Mtakati said the parties announced in July last year that they had agreed in principle to establish such a joint venture, and the agreement had now been finalised.
Anglo Platinum holds 50,33% and Cluff 49,67% of the mineral rights in the area covered by the joint venture.
Both parties would contribute assets to the venture, said Mtakati.
Cluff would also pay $5-million in cash and $3-million in Cluff shares to Anglo Platinum. Cluff would then hold a 65% interest in the venture and Anglo Platinum 35%.
Cluff would continue to fund the exploration programme. Upon completion of a feasibility study, and should Cluff decide to mine, Cluff would pay a further $12,5-million to Anglo Platinum so as to increase its interest in the venture to 87,5%.
The parties would then finalise the terms for Anglo Platinum to purchase the concentrate produced by the mine.
The agreement was subject to certain statutory consents, said Mtakati. – Sapa