SA miner buys Aquarius Platinum

By The NewsDay | Oct. 7, 2015 | 2 Min read

A SOUTH Africa-based gold miner Sibanye Gold has bought Aquarius Platinum for $294 million, the two companies announced yesterday.

BY BUSINESS REPORTER Sibanye will offer $0,195 or R2,66 a share for Aquarius.

“In the absence of a superior proposal and subject to an independent expert concluding that the transaction is fair and reasonable and in the best interests of Aquarius shareholders, the Aquarius board has resolved unanimously to recommend that Aquarius shareholders vote in favour of the transaction,” Aquarius said in a statement.

It said the transaction had been unanimously approved by the Sibanye board and was not subject to Sibanye shareholder approval.

Aquarius also owns a stake in the Mimosa venture in Zimbabwe with Impala Platinum Holdings Ltd. The two have 50% apiece in the platinum miner.

In a statement, Sibanye said: “Aquarius operations are efficiently managed, mechanised and low-cost operations that will consolidate Sibanye’s position in the South African Platinum Group Metals (PGM) sector and also provide Sibanye with additional PGM operational experience.

“In addition, the transaction provides an entry point into Zimbabwe, which hosts the second largest platinum reserves in the world and represents significant, low cost optionality.”

Aquarius’ primary assets are its stakes in the Kroondal and Mimosa mines and a retreatment facility, Platinum Mile. The Kroondal mine is one of the most cost-efficient underground platinum mines in South Africa with an average cost per tonne milled of R567 for the year ending June 30, 2015.

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Mimosa Mine is one of the most cost-efficient and safest PGM producers in Zimbabwe.

Aquarius has a primary listing on the Australian Securities Exchange, a premium listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange.

Sibanye is the largest individual producer of gold in South Africa and is one of 10 largest gold producers globally.