RBR: Extension of notice date for disposal of concentrate agreement
Royal Bafokeng Platinum, through its wholly-owned subsidiary, Royal Bafokeng Resources Proprietary Limited (“RBR”), is party to a Disposal of Concentrate Agreement with Rustenburg Platinum Mines Limited (a wholly-owned subsidiary of Anglo American Platinum Limited) (“RPM”) entered into on 4 July 2018 (the “DOCA”) (which replaced the previous longstanding disposal of concentrate agreement), in terms of which RPM has agreed to purchase all of the PGM concentrate produced by RBR (the “Concentrate”).
The termination date of the DOCA in respect of either 17% or 50% of the Concentrate is 11 August 2024, provided that RPM gives notice of such termination on or before 10 August 2022, failing which the DOCA shall endure for continuous rolling periods of 5 years unless terminated in accordance with the terms stipulated in the DOCA.
Given that the Company is currently the subject of a mandatory offer by Impala Platinum Holdings Limited (“the Offer”), the Company and RPM agree that it is advisable that RPM delays its decision regarding the DOCA. RBR has accordingly agreed that RPM may deliver a termination notice in terms of the DOCA at any time on or before 10 February 2023, on the basis that if a termination notice is given on or before that date, the termination date of the DOCA in respect of 17% or 50%, as the case may be, of the concentrate will remain 11 August 2024 (or such later date as the Parties may agree in writing).
