Central African Mining and Exploration Company (CAMEC) has bought a 44.5 per cent stake in platinum mining company Pfula Investments for £7.5 million.

The terms of the deal include a payment of £1.5 million in cash, as well as the acquisition of ten million shares for which CAMEC paid £6 million.

News of CAMEC's acquisition comes while Pfula and its black economic empowerment (BEE) partner, African Platinum (Afplats), are in negotiations to combine the Inkosi and Imbasa Platinum Group Element mining operations - in which Pfula holds stakes of 52 per cent and 41 per cent respectively - into a single venture.

Should negotiations prove fruitful, Afplats will hold a 53 per cent stake in the Bushveld mining complex venture, while Pfula will be the minority shareholder with 47 per cent - equating to a 20.9 per cent for CAMEC.

Following moves to better exploit the mines' resources, including the drilling of 14 new, exploratory boreholes in May 2006, estimates of the combined resources of platinum group metals now stand at 38.8 million oz.

Afplats is currently the subject of a takeover bid from Impala Platinum.

Sources:

CAMEC press release

http://www.miningmx.com/wts/723388.htm

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