Anglo American Platinum has agreed to sell its 85% interest in the Union mine in South Africa and 50.1% interest in MASA Chrome Co. to a subsidiary of Siyanda Resources. Anglo American Platinum will retain the Mortimer smelter operation.
The transaction includes an intial purchase price of R400 million (approximately $30 million) in cash, as well as a deferred consideration based on 35% of cumulative distributable free cash flow paid annually as an earn-out, for a period of 10 years from the completion date of the transaction.
Siyanda will sell concentrate produced by the Union mine to Anglo American Platinum for seven years, thereafter Anglo American Platinum will toll treat concentrate for the remaining life of the Union mine.
The transaction is expected to be completed during 2017.