Chinese platinum miner, Hebei Zhongbo Platinum, will acquire the PGM assets of JSE-listed junior miner, Eastern Platinum (EsatPlats), for $225 million in cash, it emerged on Monday.

The assets to be acquired by Hebei Zhongbo include the Crocodile River Mine, Spitzkop, Kennedy’s Vale and Mareesburg projects and their associated mining and prospecting rights.

“The entire resource sector is under considerable pressure and PGMs have been disproportionately impacted as a result of a number of factors unique to the sector, “Ian Rozier, CEO of Eastplats, said.

“The capital required to advance the Eastplats assets into production is not available in the public markets at this time and we are very encouraged by the ability of Hebei Zhongbo to deploy its resources in this regard,” Rozier said, adding foreign capital and the creation of much needed jobs will contribute to the on-going socio-economic development.

Rozier said the deal will leave Eastplats extremely well capitalized to take advantage of the considerable opportunities in this weak market.

Hebei Zhongbo is going to assume operating responsibility for the Crocodile River Mine and ownership of the Eastplats subsidiaries. Eastplats will remain with cash as its sole asset.