Pallinghurst Resources Ltd. (OTC Pink:PLLHF) announced that by consolidating its platinum group metals interests and bringing them together with its co-investors and the Bakgatla Ba Kgafela Tribe, it has created Sedibelo Platinum Mines Ltd., an entirely new entity. As a result of the consolidation, South Africa’s Industrial Development Corporation was able to complete its US$368 million investment in Sedibelo.
According to the press release, the benefits of the consolidation and investment include:
- The creation of a large and contiguous ore‐body which will allow for the development of a safe and shallow mining complex, with a long life;
- Creates an unhedged and debt‐free producer, with a strong balance sheet;
- Unlocking synergies and benefitting from anticipated rapid organic growth with associated job creation;
- Reinforces the strong partnership with the Bakgatla community which is also the Sedibelo Platinum Mines BEE partner; and
- Opportunity to partner with the IDC to form a joint venture to explore and develop opportunities for energy efficient PGM beneficiation.