Impala Platinum (Implats) and African Platinum (Afplats) have confirmed that their respective boards have agreed terms for a takeover deal.

The recommended cash offer by Implats values each Afplats share at 55p, making the deal worth £265 million.

The acquisition of Afplats would give Impala one of the largest remaining resources in the Western Limb of the Bushveld Igneous Complex

Implats Chief Executive David Brown said: "I am very pleased to announce the offer to acquire 100 per cent of Afplats.

"This transaction is complementary to the strategic partnership agreement entered into with Afplats and represents an attractive opportunity for Implats to participate in the development of one of the largest remaining resources in the Western Limb of the Bushveld Igneous Complex."

He added that the deal would contribute directly to the firm's strategy is "the first building block" in plans for the next phase of growth to 2.8 million oz of platinum per annum.

Roy Pitchford, Chief Executive of Afplats, added: "Afplats has an exciting portfolio of assets, in particular our flagship Leeuwkop project.

"However developing that asset will require significant investment and returns on this investment will take several years."

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