Eastern Platinum (Eastplats) has finalised its purchase of a 42.3 per cent stake in the Gubevu Consortium, which holds 26 per cent of the shares of Barplats Investment.

The Johannesburg Stock Exchange-listed platinum producer paid R43 million for the stake in its black empowerment partner (BEP).

Eastplats will also pay a sum of R21,6 million to settle expenses and fees accrued by Gubevu.

In addition the Canada-based company has acquired certain loans of Gubevu and Barplats from third party lenders in consideration of payments totalling $37.5 million.

Included in the figure are related fees and expenses, along with the principal and interest owing on the loans.

News of the deal follows Eastplats last month being granted permission by the High Court of South Africa to increase its stake in Barplats through the Gubevu deal to 74 per cent.

Commenting on the deal in a statement issued at the time, Eastplats said: "The 74 per cent interest in Barplats cements the company's vision of achieving growth by acquisition as opposed to exploration.

"Eastplats will continue to be focused on the growth and development of its pgm (platinum group metals) deposits, as well as on realising value from Barplats' existing platinum assets. "

Sources:

Eastplats buys 42,3% in Barplats' BEE partner, 18/06/07
http://www.miningweekly.co.za/article.php?a_id=111194

Eastplats gets High Court approval for Barplats plan, 23/06/07
http://www.miningweekly.co.za/article.php?a_id=106222


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