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TheStreet Open House

Atlatsa And Anglo Platinum Agree To First Phase Of Restructure Plan

Significant reduction in Atlatsa's cost of borrowing going forward

VANCOUVER, Sept. 27, 2012 /PRNewswire/ - Atlatsa Resources Corporation ("Atlatsa" or the "Company") (TSXV: ATL; NYSE MKT: ATL; JSE: ATL) announces it has concluded an interim implementation agreement ("the first phase agreement") with Anglo American Platinum Limited ("Anglo Platinum"), comprising the first phase of its restructuring, recapitalization and refinancing plan ("the Restructure Plan") for the Company, its wholly owned subsidiary, Plateau Resources Proprietary Limited ("Plateau") and the Bokoni group of companies ("Bokoni group"), which Restructure Plan was described in greater detail in the Company's news release dated February 2, 2012 and its subsequent market update announcements.

The effect of the first phase agreement will be as follows:

  • Atlatsa, Plateau and the Bokoni group will consolidate outstanding debt and preference shares into its existing senior term loan facility with Anglo Platinum ("the Senior Loan") on terms and conditions agreed between the parties in the first phase agreement. This will result in the repayment of preference shares through the redemption of all "A" preference shares outstanding in the share capital of Plateau and the Bokoni group, together with repayment of the Operating Cash Shortfall Facility loan within the Plateau and Bokoni group structures, which debt and preference shares will be consolidated into the Senior Loan going forward;
  • The Senior Loan, as consolidated, will bear an effective annual interest rate of 6.23 % (linked to the 3 month JIBAR rate), as opposed to the annual effective interest rate of 12.31% currently charged on the various Atlatsa and Bokoni group debt owing to Anglo Platinum.

Conclusion of the first phase agreement will simplify Atlatsa's balance sheet structure and materially reduce its effective cost of borrowing.  Closing of the above-mentioned transaction is expected to occur on or about September 28, 2012 and is subject to satisfaction of certain customary terms and conditions.

For further information regarding the first phase agreement, which constitutes a "related party transaction" for purposes of Multilateral Instrument 61-101 - Protection of Minority Securityholders in Special Transactions, shareholders are referred to the material change report dated September 26, 2012 which will be available on SEDAR at www.sedar.com.  This news release was issued as soon as possible following execution of the first phase agreement but less than 21 days before the implementation of the transactions contemplated by the first phase agreement, as Atlatsa considered it to be in the Company's best interests to negotiate and complete the transactions on an expedited basis with a view to reducing interest payment obligations and for other sound business reasons.

The Company anticipates that the Atlatsa and Bokoni group debt will be further reduced on implementation of the transactions to be completed as part of the second phase of the Restructure Plan. The second phase of the Restructure Plan remains subject to finalization of definitive agreements with respect to such transactions, as well as obtaining the necessary regulatory approvals from the Department of Mineral Resources, South Africa and other regulatory bodies.

Shareholders are reminded that the Company remains under cautionary until the definitive agreements relating to the second phase of the Restructure Plan have been executed and its financial effects have been finalized.

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