Sibanye to loan $200m to Thor
SIBANYE Gold said yesterday that it had resolved to provide $200 million (R2.56 billion) financial assistance to its indirect wholly-owned subsidiary, Thor US Holdco, in a bid to capitalise its wholly-owned subsidiary Stillwater Mining Company. Sibanye said this was to enable Stillwater to settle certain short-term debts following Sibanye’s takeover of the US’s sole provider of platinum and palladium.
In May, Sibanye and Thor US Holdco completed the acquisition of Stillwater for $2.2bn. Stillwater, located in Montana in the US, owns the highest grade Platinum Group Metals (PGM) mines in the world, producing approximately 550 000 ounces of grade 2E PGM per annum from two operating mines.
The loan constituted direct and/or indirect financial assistance in terms of the provisions of the Companies Act. Sibanye said the board had satisfied itself that immediately after providing the financial assistance to Thor US Holdco, the company would then satisfy the solvency and liquidity test, having considered all reasonable financial circumstances.