African Platinum has announced the completion of a black economic empowerment (BEE) deal with the Bakwena Ba-Mogopa (Bakwena) community.

The platinum exploration and development company has revealed that the deal will provide Bakwena with a 26 per cent stake in African Platinum's Leeuwkop mining project.

African Platinum will provide R1 billion in development investment for the Leeuwkop project and will also pay the Bakwena group R7.5 million per year for eight years from the granting of the mining right.

"We believe that this agreement represents one of the largest community-based transactions to have been concluded in South Africa and provides for true broad based economic empowerment for our partners, the Bakwena," said African Platinum's Chief Executive, Roy Pitchford.

He added: "We believe that we are very close to securing the mining right that will enable Afplats to start the development of the Leeuwkop Project."

Under the terms of the agreement, African Platinum will hold a 74 per cent share in Afplats Limited, which holds the new order prospecting right for the area, with Bakwena holding the rest.

Ÿ Adfero Ltd