Sibanye to loan $200m to Thor

The Star Early Edition - - COMPANIES -

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.

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