With the intention of making further progress delivering on its growth strategy Northam is acquiring the Eland Platinum mine from Glencore South Africa. This transaction is supplemented by an exclusive chrome marketing agreement with Glencore International AG (Glencore) to market and sell chrome produced at Northam’s PGM operations.
In terms of the proposed transaction and for a purchase price of ZAR 175m (US$13.5m) in cash, Northam will acquire all Eland’s assets, including Eland’s two mining rights with a resource estimated at 21.3Moz 4E with an average in situ grade of 4.4g/t surface and underground infrastructure; and a mining fleet in excess of 100 vehicles which include low profile mechanised mining equipment.
Northam chief executive Paul Dunne said: “The Eland transaction provides Northam with a medium-term option over a large, shallow resource with fully developed, world-class surface infrastructure. Northam will also be acquiring a sizeable mining fleet, a portion of which will be utilised at the Booysendal South operation. The chrome marketing agreement establishes a long-term relationship between Northam and Glencore, a leading global chrome trader, which will contribute to maximising Northam’s chrome revenue.”