Implats - Announcement26 Mar 2001
Impala Platinum Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
Acquisition of a stake in Zimplats and Zimplats Ngezi project
Impala Platinum Holdings Limited has entered into an agreement to acquire a 30
percent stake in Zimbabwe Platinum Mines Limited's (Zimplats) Ngezi project for
a consideration of R240 million (US$30 million).
In addition, Implats and, subject to certain regulatory requirements, ABSA Bank
Limited (ABSA), will jointly purchase a 30 percent equity stake in Zimplats
from Delta Gold Limited at a purchase price of R131 million (26,5 million
shares at A$1,25 per share). Zimplats is listed on the Australian Stock
Exchange. Delta Gold will retain a 21 percent stake in Zimplats with the
balance of Zimplats shares being held by minorities.
A technical feasibility study has indicated the Ngezi project to be a 100 000
ounce platinum mine over a 20 year life.
The Ngezi project is situated on the Great Dyke some 75 kilometres from the
Hartley mine metallurgical complex. The orebody is situated between 20 and 50
metres underground and will be exploited by means of opencast mining methods.
Ore will be transported by road to be processed at the Hartley mine
metallurgical complex. An agreement has been entered into to sell the smelter
matte to Impala Refining Services (an Implats subsidiary that refines and
markets platinum group metals). Peak funding of R400 million (US$50 million)
will be funded from Implats contribution to the project and debt funding from
The transactions are subject to certain regulatory and other conditions
(including the approval of Zimplats shareholders). The South African Reserve
Bank has given approval for the transaction.
A further announcement will be made in due course.
26 March 2001
Corporate Bank
Corporate Finance
(Registration number 1986/004794/06)