National Indigenisation and Economic Empowerment Fund, Zimplats Mhondoro-Ngezi Chegutu Zvimba Community Share Ownership Trust and an employee share ownership trust concluded a term sheet to acquire 51% stake in Zimbabwe Platinum Mines Limited from Zimplats Holdings Ltd. for approximately $970 million.
January 11, 2013 at 04:00 am
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National Indigenisation and Economic Empowerment Fund, Zimplats Mhondoro-Ngezi Chegutu Zvimba Community Share Ownership Trust and an employee share ownership trust concluded a term sheet to acquire 51% stake in Zimbabwe Platinum Mines (Private) Limited from Zimplats Holdings Ltd. (ASX:ZIM) for approximately $970 million on January 11, 2013. The purchase price is after taking into account the payment for the 2006 release of ground obligation (in lieu of indigenisation credits). Each of Zimplats Mhondoro-Ngezi Chegutu Zvimba Community Share Ownership Trust and employee share ownership trust will acquire 10% stake and National Indigenisation and Economic Empowerment Fund will acquire 31% stake in Zimbabwe Platinum Mines. Zimplats will facilitate the transaction by providing vendor funding at an interest rate of 10% per annum. The vendor financing will be repayable from 85% of the dividends declared by Zimbabwe Platinum Mines. Zimplats will retain the balance of 49% of Zimbabwe Platinum Mines and will continue with the management of Zimbabwe Platinum Mines.
National Indigenisation and Economic Empowerment Fund, Zimplats Mhondoro-Ngezi Chegutu Zvimba Community Share Ownership Trust and employee share ownership trust will be entitled to appoint Directors to the Board of Zimbabwe Platinum Mines. The transaction is subject to definitive agreement, regulatory approvals including Zimbabwe Exchange Control approval, shareholder and Board approval of Zimplats Holdings and Zimbabwe Platinum Mines, the amendment of the May 24, 2006 release of ground agreement and an exemption being obtained for Zimbabwean withholding tax on interest paid by National Indigenisation and Economic Empowerment Fund, Zimplats Mhondoro-Ngezi Chegutu Zvimba Community Share Ownership Trust and employee share ownership trust to Zimplats under the vendor financing arrangements. The transaction is expected to be completed by June 30, 2013.
Zimplats Holdings Limited is a Guernsey-based platinum mining company engaged in producing platinum group metals (PGM) and associated metals, such as nickel, gold, copper, cobalt and silver mined from the Great Dyke in Zimbabwe. The Company operates mines in Ngezi and has processing plants in Selous and Ngezi. The Company, through its subsidiary Zimbabwe Platinum Mines (Private) Limited, is engaged in exploiting the ore bodies located on the Great Dyke in Zimbabwe. It operates five underground mines which supply ore to three concentrator modules (two at Ngezi and the third one at Selous). It holds title to two mining leases namely Mining Lease Number 36 (ML36) which covers the Hartley area incorporating the Selous Metallurgical Complex (SMC) concentrating and smelting operations and Mining Lease Number 37 (ML37) covering the Ngezi mining and processing operations. It sells white matte, which consists of platinum, palladium, rhodium, iridium, ruthenium and associated metals.
National Indigenisation and Economic Empowerment Fund, Zimplats Mhondoro-Ngezi Chegutu Zvimba Community Share Ownership Trust and an employee share ownership trust concluded a term sheet to acquire 51% stake in Zimbabwe Platinum Mines Limited from Zimplats Holdings Ltd. for approximately $970 million.
ZIMPLATS HOLDINGS LIMITED 
