Bakubung community to acquire housing estate from Wesizwe Platinum

JOHANNESBURG (miningweekly.com) – The Bakubung Ba Ratheo (BBR) community, which falls within Wesizwe Platinum’s Bakubung platinum mine (BPM) development area, is seeking to acquire the Gabonewe Housing Estate, established for the BPM housing development project.

The construction of the estate will entail 801 mixed-use residential housing units, including all related bulk infrastructure services.

Wesizwe and the BBR community leadership on Friday signed a framework agreement intended to define the due diligence process; establish the framework for the prospective transaction principles; take note of what the benefits of the acquisition will be, economically and for the community; set timelines for the due diligence process; and define the terms and conditions of the master lease agreement between BBR and Wesizwe for the offtake of 70% of the units.

The due diligence process will immediately follow the signing of the framework agreement and will be completed within 20 days of its signing. Within five days of due diligence completion, the BBR community leadership must make an offer to wholly purchase Gabonewe, make an offer to acquire a majority shareholding in Gabonewe, or inform Wesizwe that no offer will be made.

Final acquisition transaction documents must be negotiated and finalised within 30 days of the offer and shall define the principles, provisions, terms and conditions of the transaction.

The transaction is also subject to regulatory approvals from all government departments with an interest in the transaction, which includes the Department of Rural Development and Land Reform, the Department of Mineral Resources, the National Department of Human Settlements – through the Social Housing Regulatory Authority – the North West Department of Local Government and Human Settlements, and the Moses Kotane local municipality.