The black empowerment company, Mvelaphanda Resources, has sold its share in the Booysensdal Platinum project to Northam Platinum for R147 million profit.

Mvela explained in a statement that it paid Khumama, a privately-owned empowerment consortium, R313 million in cash and shares, for a half share of the Booysensdal project. It then sold its Booysensdal interest to Northam for R460 million, receiving R90 million in cash and the balance in shares.  The deal means that Mvela has increased its hold on Northam, boosting its stake in the firm from 22.3 per cent to 34 per cent to become the largest individual shareholder.  The other half of the Booysensdal project is owned by Angloplats.

Mvela director, Mark Willcox, commented on the deal: 'The purchase of Khumama not only brings access to a world class pgm resource, but also significantly enhances the direct and beneficial broad based empowerment ownership in Mvela.'

He added that the acquisition represents the first stage of Mvela's strategy to consolidating its platinum interests and create a world class black-owned and operated pgm company.

'With Northam's proven track record and expertise in mining and smelting, its ungeared balance sheet and improved production profile, Northam is an obvious choice to develop the Khumama asset,' he stated.

The Booysendal project is situated in a well explored area of the Eastern Limb of the Bushveld Complex.  Bernard van Rooyen, a Mvela non-executive director stated that, '[the] joint venture...involves a total resource of over 124million pgm ounces'.