Eurasian Natural Resources Corporation (ENRC) has purchased a 12.2 per cent interest in Northam Platinum, it was confirmed today (26th April).

The company will buy the stake in the South African pgm producer from Mvelaphanda Resources for R50 per share, which equates to a total consideration of R2.2 billion.

According to reports, the cash consideration will be fully funded from Eurasian's existing resources and is set to be completed in May 2010.

Eurasian Chief Executive Felix Vulis said: "The purchase of the interest in Northam is in line with our stated strategy of diversifying ENRC's commodity portfolio and its geographic exposure.

"The interest in Northam is a strategic opportunity to invest in one of the largest pgm miners in the world at a time when platinum is expected to benefit from increased demand and to face supply constraints."

Under the rules of the United Kingdom Listing Authority, the deal for Northam - which is one of four pgm groups in South Africa with smelting operations - is a Class 3 transaction.

Eurasian's attempts to diversify its portfolio have already seen it purchase 100 per cent of Enya in February and acquire Democratic Republic of Congo-focused miner Camec.

Sources:

Eurasian Natural Res Buys 12.2% Of Northam Platinum For $296 Million (26/04/10)

ENRC moves into South African platinum (26/04/10)

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