Shareholders of Sable Platinum have been advised that the company has entered into a letter agreement with Atang Makgekgenene to acquire 4% of the equity interest in Global Initiatives from the owner for a purchase price of $4 million.
The South African platinum exploration company has also been granted three options to acquire a further 6%, 5% and 11% respectively of the equity interest in the Botswana based company from Makgekgenene subject to meeting certain conditions.
“Global has the rights to the tailings and slag dump at the BCL Limited’s nickel and copper mine situated near Selebi Phikwe in Botswana (the “Selebi Phikwe project”). The board of Sable is satisfied that because the Selebi Phikwe operation has been producing slag for some 40 years there is significant potential for metals including iron in the slag heap and Sable is investigating alternative methods to economically recover any such metals,” Sable Platinum noted.
“Sable has already started investigating the possibility of mining vanadium and iron ore present on four of the five project areas on the Western Limb of the Bushveld Complex. It is believed that development of these properties will provide an earlier route to cash flow. The Selebi Phikwe project is a logical extension of this strategy. Early assessment of this project indicates that the acquisition of up to 26% of Global and a management contract on the Selebi Phikwe project will provide a significant uplift to Sable shareholders.”
Under the agreement, Sable Platinum will acquire a 4% equity interest in Global Initiative from Makgekgenene for a purchase price of $4 000 000 payable in cash within a reasonable period of time after the fulfillment of the conditions.
Sable said the share acquisition is classified as a Category 2 transaction in terms of the JSE Listings Requirements. The granting of each of the first option, the second option and the third option to acquire the relevant equity interests in Global will only be categorised in terms of the JSE Listings Requirements on exercise of each of the first option, the second option and the third option, respectively.
“The financial effects of the share acquisition are still in the process of being finalised and will be published in due course. Sable shareholders are advised to exercise caution when dealing in their shares until the financial effects of the share acquisition are announced,” Sable Platinum told shareholders.