TIDMPPN
RNS Number : 4597D
Platmin Limited
23 March 2011
NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES
NEWSWIRE SERVICES
PLATMIN SECURES 6 MILLION 4E PGM OUNCES IN THE CONTIGUOUS
SEDIBELO WEST PROPERTY IN A TRANSFORMING ACQUISITION
23 March 2011, Toronto: Platmin Limited ("Platmin" or the
"Company") (TSX/AIM: PPN; JSE: PLN) today announced the acquisition
of an incremental 5.99 million 4E PGM inferred resource ounces
(42.57 million tonnes at a grade of 4.38g/t) contained within the
western portion of the Sedibelo PGM Project concession ("Sedibelo
West") from the Bakgatla-Ba-Kgafela Tribe ("Bakgatla") and
Itereleng Bakgatla Mineral Resources (Pty) Limited ("IBMR"), for an
aggregate consideration of US$75 million in cash (equivalent to
US$12.50 per 4E PGM inferred resource ounce).
Sedibelo West is contiguous with and down-dip of the eastern
boundary of Tuschenkomst, Platmin's operating pit, where PGM
production is building up.
The acquisition of the Sedibelo West property (the
"Acquisition") will add significant value to Platmin by:
-- materially increasing the PGM mineral base accessible from
the existing pit
-- extending the life of mine significantly and
-- providing operational flexibility, particularly in the north
pit.
Optimisation studies to maximise the value of the enlarged
PPM/Sedibelo West property have begun, and should be concluded
during the 2011 financial year.
A clear benefit of mining from PPM's existing pit through the
farm boundary into Sedibelo West is the direct access to the
sulphide ore which achieves higher recoveries than oxide or
transitional ore.
In addition to the Sedibelo West purchase, Platmin has also
acquired an effective 50% interest in an infrastructure vehicle
(the "Vehicle"), which has acquired all of Barrick's strategically
important infrastructure rights and assets. These include power and
water rights as well as certain other assets which can be used for
the development of the PGM deposits to the east of the existing
operations (the Sedibelo Central, Sedibelo East and Magazynskraal
projects). Through this transaction, Platmin has not only secured
all of its future power and water requirements, but has also
positioned itself ideally for participation in further regional
consolidation. This acquisition has been completed in partnership
with the Bakgatla and Ivy Lane Capital Limited (a
Pallinghurst-related entity) which will jointly own the other 50%
of the Vehicle. The aggregate consideration for Platmin's 50%
interest is approximately US$12 million.
Platmin Chairman, Brian Gilbertson, welcomed these landmark
transactions, which represent a significant first step towards
Platmin's participation in the cost-effective development of the
last shallow PGM resource on the western limb of the Bushveld
Complex.
Gilbertson noted, "Today's announcement cements a long-standing
partnership between the Traditional Council of the Bakgatla and
Platmin, and will deliver value to shareholders, community members
and indeed to South Africa.
"Nature's orebodies are not delineated by arbitrary farm fences.
It was the Bakgatla's vision - and one we share - to develop PPM
and Sedibelo West in the most productive manner: This means one
orebody, one mine.
"The acquisition of the Sedibelo West deposit will create mining
flexibility and extend the life of our Pilanesberg Platinum Mine
with all the multiplier benefits of employment; foreign exchange:
revenue to the fiscus; and the economic and regional socio-economic
benefits that will be generated. Importantly, Platmin's world-class
concentrator and other infrastructure will be used to process more
PGM-bearing reef, making this one of the most productive
acquisitions in the industry."
Kgosi Nyalala Pilane to join the board of Platmin
As Chairman of Platmin, Mr Gilbertson has invited Kgosi Nyalala
Pilane to join the board of Platmin in order that he can directly
represent the Bakgatla-Ba-Kgafela Traditional Council in the
company's affairs. In extending this invitation to Kgosi Pilane,
Mr. Gilbertson said "We look forward to his counsel and leadership
- in what is set to be a long association with the company".
Kgosi Nyalala Pilane welcomed the development of an extended
operation on communal land by responsible operators. "The Bakgatla
Traditional Authority's partnership with and investment in Platmin
will support the tribal administration's ability to invest in
ongoing community development programmes.
"The proceeds from the sale of these rights will inject
significant funds and resources into our ongoing community
development projects. These will benefit the more than 350,000
members of the Bakgatla community. This new mining venture in
Moruleng initially created 2,500 casual jobs during the mine's
construction phase and continues to provide employment and skills
training for many community members."
About Platmin
Platmin's primary asset is the Pilanesberg Platinum Mine, which
is building up to full production from the Tuschenkomst pit. The
focus of the Company is on achieving the metal production forecasts
predicted in the bankable feasibility study for the project and
participating in the value creation of developing the western limb
of the Bushveld Complex. Platmin also hold interests in projects on
the eastern limb.
National Instrument 43-101 Disclosures
Under National Instrument 43-101 ("NI 43-101") of the Canadian
Securities Administrators, the Qualified Person for the Sedibelo
West property is Mr. Terry Holohan, a Qualified Person as defined
by NI 43-101. Mr. Holohan is not independent of Platmin for
purposes of NI 43-101. He has reviewed and verified the contents of
this press release.
For further information
Tom Dale, Platmin - CEO Arne H Frandsen, Platmin - Director
+27 12 661 4280 +27 21 886 7294
Charmane Russell George Nakos
Russell & Associates Investec Bank Limited
+27 11 880 3924 +27 11 286 7311
+27 82 372 5816 +27 82 903 3746
Cautionary note regarding forward-looking statements
This market release contains "forward-looking information" which
may include, but is not limited to, statements with respect to the
future financial and operating performance of Platmin, its
subsidiaries and its mineral properties, the future price of
platinum or other PGMs, the estimation of mineral resources and
reserves, the realisation of mineral resource estimates,
exploration expenditures, costs and timing of the development of
new deposits, costs and timing of the development of new mines,
timing of economic and scoping-level studies, forecasts and
projections of future production, capital costs and operating
costs, future timing of achieving a steady state of production,
future costs and timing of future exploration, requirements for
additional capital, government regulation of mining operations and
exploration operations, timing and receipt of approvals and
licences under mineral legislation, environmental risks, title
disputes or claims and limitations of insurance coverage. Often,
but not always, forward-looking statements can be identified by the
use of words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
"believes" or variations (including negative variations) of such
words and phrases, or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved.
Forward-looking statements in this market release include among
others: the Company's plans with respect to the future development
and operation of the PPM and the future advancement of the Sedibelo
projects; timing of the receipt of governmental approvals and/or
acceptances; targets, estimates and assumptions in respect of
platinum and other PGMs production and prices; amount and type of
future capital expenditures and capital resources; mineral reserves
and mineral resources; anticipated grades; recovery rates; future
financial or operating performance; costs and timing of the
development of new deposits; costs, timing and location of future
drilling; earning of future interests in various permits;
production decisions; costs and timing of construction; operating
expenditures; costs and timing of future exploration; and
environmental and reclamation expenses.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Platmin and/or its subsidiaries to
be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Such factors include, among others, general business,
economic, competitive, political and social uncertainties; the
actual results of current exploration activities; conclusions of
economic evaluations and studies; currency fluctuations; future
prices of platinum and other metals; possible variations of ore
grade or recovery rates; failure of equipment to operate as
anticipated; accidents, political instability, insurrection or war;
delays in obtaining governmental approvals or financing; liquidity
and financing risks related to the global economic crisis, as well
as those factors discussed in the section entitled "Risk Factors"
in the Company's annual information form filed at www.sedar.com.
Such forward-looking statements are based on a number of material
factors and assumptions, including: that contracted parties provide
goods and/or services on the agreed timeframes; that no unusual
geological (including grade) or technical problems occur; that
plant and equipment work as anticipated, and that there is no
material adverse change in the price of platinum or other PGMs.
Although Platmin has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results to differ from
those anticipated, estimated or intended. Forward-looking
statements contained herein are made as of the date of this
announcement and Platmin disclaims any obligation to update any
forward-looking statements, whether as a result of new information,
future events or results or otherwise, except as required by
applicable laws. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements due to the inherent uncertainty
therein.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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