TORONTO The first Canadian listing of a South African Black Empowerment Group is coming up later this year. PELAWAN, which has substantial platinum assets in South Africa, has proposed a reverse takeover transaction with Canadian-listed ANOORAQ RESOURCES. Pelawan will hold an initial 63% equity interest in the Canadian company.
Anooraq will then embark on a capital raising program for the purposes of part equity financing its 50% participation interest in the Ga Phasha platinum project as well as other joint ventures with ANGLO PLATINUM. Pelawan will ensure that it continues to hold a minimum of 52% in Anooraq to ensure ongoing compliance with South African mining laws.
This is a significant transaction in that it is the first time in South African history that the South African Reserve Bank has given permission to a South African company to obtain a primary listing in a foreign jurisdiction where the company holds South African mining assets, says Darryl Levitt of FASKEN MARTINEAU DuMOULIN. It is also significant in that it will be the first Black Economic Empowerment Group to list on a Canadian stock exchange. The transaction is scheduled to close on September 27. “Already a number of companies in South Africa are attempting to emulate this transaction.”
Levitt may be reached at 416-366-8381 or DLevitt@tor.fasken.com.