This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Atlatsa And Anglo Platinum Agree To First Phase Of Restructure Plan

Stocks in this article: ATL

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  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.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,055.99 +2.28 0.01%
S&P 500 2,092.59 +3.82 0.18%
NASDAQ 4,810.4870 +3.6280 0.08%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs