Anglo American Platinum (Amplats) said on Thursday its subsidiary, Rustenburg Platinum Mines, has accepted a R1.86bn offer from Royal Bafokeng Platinum for a 33% stake in its Bafokeng Rasimone joint venture.
The company said the disposal would allow it to "focus its capital allocation into its own-managed mines and projects".
"Anglo American Platinum has accepted an offer from Royal Bafokeng Platinum for our 33% interest in the Bafokeng Rasimone Platinum Mine Joint Venture, whilst retaining the Bafokeng Rasimone Platinum Mine Joint Venture (BRPM JV) purchase of concentrate," Anglo American Platinum CEO Chris Griffith said in a statement.
The company said the R1.86bn purchase offer would be increased by capital contributions Royal Platinum Mines makes, in respect of its 33% interest in the BRPM JV, between the signing of the purchase agreement and completion of the deal.
Rustenburg Platinum Mine entered into a sale and purchase agreement on 4 July 2018.
The transaction is subject to lender and shareholder approvals and is expected to be finalised in the third quarter of 2018.
The upfront purchase amount will be settled by a cash payment by Royal Bafokeng Resources, equivalent to the proceeds Royal BPlat raises through a 5% capital raise of its shares in issue, amounting to R200m at current market prices.
Under the deal, Anglo American Platinum will retain its right to process 50% of the BRPM JV concentrate for the life of mine.
* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER