Business
Acquisition of Phoenix Platinum Now Unconditional
Acquisition of Phoenix Platinum Now Unconditional.
About this update from Sylvania Platinum Ltd.
[{"type":"text","content":"\n \nRNS Number : 7292V Sylvania Platinum Limited 07 November 2017 \n\n \nSylvania Platinum Limited \n(\"Sylvania\", \"the Company\" or \"the Group\")\n AIM (SLP)\n \n \nSYLVANIA ANNOUNCES THAT THE ACQUISITION OF PHOENIX PLATINUM IS NOW UNCONDITIONAL\n \n7 November 2017\n \nINTRODUCTION\n \nSylvania Platinum Limited (\"SLP\"), the low-cost Platinum Group Metal (\"PGM\") processor and developer, is pleased to announce that the acquisition (\"the Transaction\") by Sylvania from Pan African Resources Plc (\"PAR\") of 100% of the shares in and claims against Phoenix Platinum Mining Proprietary Limited (\"Phoenix Platinum\") is now unconditional. \nThis follows, amongst other conditions, the approval of the Transaction by the South African Competition Authorities in accordance with the Competition Act 1998.\nAs a result, the effective date of the implementation of the Transaction was, 6 November 2017 when Sylvania took over control, ownership and management of Phoenix Platinum. \n \nPHOENIX PLATINUM OPERATIONS\n \nPhoenix Platinum has an operational Chrome Tailings Retreatment Plant and approximately 2.3 mt of tailings dump resources situated in close proximity to Sylvania's Millsell and Mooinooi operations in the western bushveld region. See below for further details of Phoenix Platinum's operations.\n \nTERMS OF THE ACQUISITION\n \nThe purchase price of R89 million ($6.3 million) was settled in cash on the effective date from Sylvania's internal cash resources. The SLP Group cash balance stands at approximately $11.2 million following the payment for Phoenix Platinum.\n \nCommenting on the Transaction, Sylvania's CEO Terry McConnachie said:\n \n\"We believe that these assets provide an attractively priced addition at an advantageous moment in the price cycle. Phoenix Platinum's operations are similar in nature to Sylvania's current retreatment of PGM-rich chrome tailings operations, which will benefit from Sylvania's operational expertise. After extensive engagement with Pan African Resources and completing a thorough operational review, we are confident that we will be able to realise value for our stakeholders by leveraging our successful operating model. \nPhoenix Platinum's operations are well positioned geographically to our current operations which will as...