South African platinum producer Northam Platinum is to buy Mvelaphanda Resources for $136 million (£84 million) in shares, paving the way for access to the Dwaalkop Platinum Project.

Before the acquisition goes ahead, Mvelaphanda Resources will spin off its 50 per cent stake in Northam Platinum to its own shareholders, and has stated that it will delist after the deal.

As well as a 50 per cent interest in the Dwaalkop Platinum Project, the transaction will provide a 20.3 per cent interest in diamond producing company Trans Hex.

Northam Platinum chief executive Glyn Lewis said the transaction will provide a "unique combination" of a capital raising opportunity and a brownfields pgm project acquisition.

"Post the conclusion of this transaction Northam's resource base will be around the 140 million ounce (3PGE+Au) level, a step change from the 18 million ounces we could report only two years ago," he added.

Last month, Northam Platinum reported that operations had resumed at its Zondereinde mine, following a fatal accident that prompted suspension of work on January 9th.

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Northam to buy Mvela Resources for $136 mln (08/02/11)

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