Ridge Mining Plc, a platinum explorer in South Africa, sold its 51 percent interest in Madibeng Platinum Ltd. to James Allan & Associates Ltd. for 70 million rand ($9.8 million).
The sale is subject to due diligence by James Allan and government approval, London-based Ridge Mining said today in a statement. Ridge Mining was given stake in 2001 by the South African government, Commercial Director Francis Johnstone said in an interview from London.
``We will make a reasonable profit'' on the sale, Johnstone said, declining to be more specific. It may take three to six months to get government approval, he added.
James Allan, based in Johannesburg, was set up in 2005 to drill for other companies and is now doing its own platinum exploration, Johnstone said. It is run by James Allan and Rene Hochreiter, former platinum analyst at Nedcor Securities in Johannesburg, he added.
Madibeng, with one borehole drilled, owns Fountain Ridge, covering 3,200 hectares (7,907 acres) in South Africa's Bushveld area. The Hoekfontein local community owns 19 percent and Mmakau Mining Ltd. 30 percent, Johnstone said. Mmakau is led by Bridgette Radebe, the wife of South Africa's transport minister.
Johnstone said Ridge Mining will use part of the proceeds from the sale for its Western Ridge exploration project, which is also in the Bushveld complex, the world's biggest platinum region.
Ridge Mining shares rose 2.5 pence, or 5.2 percent, to close 51 pence in London, valuing the company at 32 million pounds ($63.1 million).
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