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Atlatsa Resources and Anglo Platinum agree R3.5 billion revised restructure plan

27 March 2013

Lower-risk operating plan, less capital intensive growth and sustainable financing places Atlatsa in exciting position


Atlatsa Resources Corporation (Atlatsa or the Company) (TSXV: ATL; NYSE MKT: ATL; JSE: ATL) is pleased to announce that, together with Anglo American Platinum (Anglo Platinum), the parties have concluded a R3.5 billion revised restructure, plan for Atlatsa and the Bokoni group of companies.

The revised restructure plan follows a detailed strategic review that was undertaken in 2012 by the new management team at Bokoni Mine, in conjunction with Anglo Platinum and Atlatsa. The review included all technical, operational and financing assumptions informing the existing mine expansion and financing strategy, having regard to the general outlook for the platinum group metals (PGMs) industry.

Harold Motaung, Chief Executive Officer of Atlatsa, notes that, “The revised plan will ensure that Atlatsa will be well positioned to implement our business strategy on a more conservative, low-risk and sustainable basis. Importantly, the plan will see the company being well-funded, with a robust balance sheet, and significant BEE ownership, in excess of 50%.”

Joel Kesler, Chief Commercial Officer commented further that, ”The new operating plan includes lower-cost, open cast project opportunities, which will enable Bokoni Mine to fill its installed processing capacity in the near term, whilst underground mining operations build up to 160,000tpm, again in a low-risk and less capital intensive manner. Capital expenditure of some R2.3 billion associated with UG2 expansions at Bokoni mine have been deferred, thereby reducing the anticipated debt burden for the Company through to 2020. As a result, Bokoni Mine will become a predominantly Merensky reef producer, accounting for 70% of total estimated production.”

“Our focus now is on ensuring Bokoni operates safely and profitably for the benefit of all our stakeholders.”

Key highlights of the revised restructure plan include:

  • a new, more conservative operating and financing plan at Bokoni Mine to 2020;
  • a simplified capital structure, by unwinding all preference share structures allowing for one class of common shares going forward;
  • a 75% reduction in Atlatsa’s overall attributable debt from ZAR3.28 billion to ZAR833 million as at 31 December 2012;
  • an equity capital injection of ZAR750 million by Anglo Platinum subscribing for 125 million new shares in Atlatsa at ZAR6.00 per share;
  • an increase in Atlatsa’s BEE shareholding from 51% to 62% allowing for equity financing flexibility into the future;
  • ZAR700 million credit facility available to finance the new operating plan at Bokoni Mine; and
  • reduced cost of borrowing by 85% from 13% to 2% over the debt term period between 2013 and 2020.

The full terms announcement, dated 27 March 2013, can be found on the Company website for a detailed description of the transaction review Revised restructure, recapitalisation and refinancing plan for Atlatsa and the Bokoni Group of Companies (PDF, 110KB).

The transaction remains subject to a number of conditions precedent, including relevant shareholder and regulatory approvals as required.

Atlatsa will report its results for the year ended 31 December 2012 on 28 March 2013. Following that, the company will announce the financial effects of this transaction.

For further information
On behalf of Atlatsa Resources

Joel Kesler
Chief Commercial Officer
Office: +27 11 779 6800
Mobile: +27 82 454 5556

Russell and Associates

Charmane Russell
Office: +27 11 880 3924
Mobile: +27 82 372 5816

Macquarie First South Capital

Annerie Britz / Yvette Labuschagne
Office: +27 11 583 2000