01/06/2015 12:23 EST | Updated 03/08/2015 05:59 EDT

Eastplats to net US$175.5 million from sale of SAfrican assets to Hebei Zhongho

VANCOUVER - Eastern Platinum Ltd. (TSX:ELR) estimates it will receive US$175.5 million in net proceeds from the sale of its South African platinum group metal business, after buying out its minority partners and paying other fees.

The Vancouver-based company will pay US$25.7 million to buy out the minority interests upon the closing of the transaction with China's Hebei Zhongho, which is aiming to acquire the Crocodile River mine and other projects and rights.

Eastplats announced on Nov. 7 that Hebei Zhongho has agreed to pay US$225 million in cash for the Eastplats business in South Africa, subject to condition including the buyout of the minority interests.

Eastplats shareholders will vote on the proposed transaction on Feb. 5 and the deal is expected to close within three to six months.

In addition to the money paid to the minority interests, the net amount received by Eastern Platinum will be reduced by a further US$23.7 million will be paid for a finder's fee and other transaction costs.