| Tue 14 Jul 2009, 8:20 | | AQP - Aquarius Platinum - Ridge Mining Plc (Ridge) Acquisition Update |
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AQP
AQP
AQP - Aquarius Platinum - Ridge Mining Plc ("Ridge") Acquisition Update
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
Share Code JSE: AQP
ISIN Code: BMG0440M1284
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR
FROM ANY JURISDICTION WHERE TO DO THE SAME WOULD CONSTITUTE A VIOLATION OF
THE RELEVANT LAWS OF SUCH JURISDICTION
14 July 2009
Aquarius Platinum Limited
Market Update
Ridge Mining Plc ("Ridge") Acquisition Update
Aquarius ("Aquarius" or "the Company") is pleased to announce that, at the
general meeting convened by the Court on 6th July, the Ridge Shareholders
voted overwhelmingly in favour of the acquisition of Ridge by Aquarius, by
means of a scheme of arrangement (the "Scheme") pursuant to Part 26 of the
Companies Act 2006, with 99.99 per cent of shares voted being in favour of
the transaction.
The Scheme remains conditional upon the subsequent sanction and (as the case
may be) confirmation of the Court. The Scheme is expected to become
effective on 30 July 2009 following conclusion of the Scheme Court hearing
which is scheduled for 27 July 2009.
Aquarius CEO Stuart Murray said: "Aquarius` South African management is ready
to commence the integration of the Ridge assets into the Aquarius stable and
have earmarked a multi-functional team to manage this process to ensure a
smooth transition. Ridge`s operating mine, Blue Ridge Mine, which is
currently in ramp-up mode should commence contributing to the Aquarius
group`s production profile immediately. At the completion of the ramp up-
phase, the Blue Ridge Mine is expected to produce approximately 125,000 4EPGM
ounces per annum, of which fifty per cent of the production will be
attributable to Aquarius."
Everest Platinum Mine Update
Following earlier announcements, Aquarius wishes to further update
shareholders on progress at the Company`s Everest Platinum Mine.
As previously announced, mining operations at Everest were suspended 8
December 2008 following the subsidence event. The affected area has
subsequently stabilized with no further subsidence or seismic activity having
occurred since 10 February 2009. Geo-technical investigations have
attributed the subsidence to extreme rainfall which affected the
characteristics of the shear zone which is prevalent in the affected area.
The area affected by the subsidence has been surveyed, confirming the
subsidence is confined to the upper areas of the original decline and
previously mined out areas in the vicinity of the decline, and that existing
stoping and development areas are not affected.
A small care and maintenance team has been retained on-mine, and is able to
access the underground workings to perform necessary maintenance activities
on the infrastructure unaffected by the subsidence whilst a dedicated project
team was appointed to undertake the detailed design and project management
for the re-opening of the mine.
The project team has evaluated multiple access alternatives and identified
the development of two new declines, one north and one south of the original
decline, as the most expedient and capital-efficient means to recommence
operations whilst ensuring optimal longer term infrastructure placement in
terms of the ore body geometry. The plan below illustrates the two new
declines in relation to the original decline. Both the declines are within
the current Everest mining area, with the declines placed in the previous
opencast mining areas. In addition, the area above the original decline will
be mined as an open-pit area.
The sequence of events will initially focus on the establishment of the North
decline, which will serve as the main decline (including decline conveyors)
whilst the south decline will be used for ventilation, men and material
access. Capital has been approved for the first phase of the project: namely
the north boxcut, storm water management, temporary and permanent services,
access road, initial underground development and rock support.
The Department of Minerals and Energy (DME) has amended the section 54
instruction allowing underground access and preparatory work, including
sliping operations to take place. Initial underground development includes
sliping operations for the establishment of the north declines and will take
place in parallel with the footwall development from the boxcut to the
underground workings. The capital cost of this phase is budgeted at R77
million and is expected to take up to 6 months. Phase 1 was specifically
scoped to utilize the window of opportunity before the rainy season, with
excavation of the North boxcut having commenced in June 2009, which will
ensure completion within the dry period.
Figure 1: Revised Access Configuration at Everest Mine available on the
company`s website
Phase 2 of the project includes completion of the decline development,
establishment of underground services and the reclamation of infrastructure,
equipping of declines and strike sections, and re-establishment of stoping
sections. Permanent surface infrastructure, such as mine services and
overland conveyers will also be completed during this phase. This
preparation, coupled with early production from the open pit area, will
enable ramp-up of underground production, with reef stockpiling prior to
resumption of milling operations. Completion of Phase 2 and production ramp-
up to process plant resumption will require approximately 10 months. The
detail engineering designs associated with Phase 2 are in process, and
preliminary Capital Budget Estimates (CBE) have been completed, confirming
the capital requirement for the entire project (including Phase 1 and 2) to
be approximately
R 250 million.
Project execution is therefore proceeding as anticipated to place Everest in
a state of readiness to resume operations. The decision to resume operations
will, however be made in the context of prevailing metals prices and market
conditions at the time.
Insurance
Discussions with insurers and underwriters were concluded and an insurance
payment has been received during the financial year ending 30 June 2009.
Quarterly Report June 2009
Aquarius will be releasing its quarterly report for the three months ended 30
June 2009 on 31 July 2009. This is a few days later than is usually the norm
to accommodate the prospectus with respect to the to the Ridge acquisition.
For further information please contact:
In Australia: In the United Kingdom In South Africa
Willi Boehm Nick Bias Hugo H?ll
willi@aquariusplat nickbias@aquariusplat hugo.holl@aquariussa
inum.com inum.com .co.za
+61 (0)8 9367 5211 + 41 (0)79 888 1642 +27 (0)14 536 4001
The securities mentioned herein have not been, and will not be, registered
under the United States Securities Act of 1933, as amended (the "Securities
Act"). The securities may not be offered or sold in the United States except
pursuant to an exemption from the registration requirements of the Securities
Act. There will be no public offer of securities in the United States.
It is expected that the New Aquarius Shares will be issued in reliance upon
the exemption from the registration requirements of the Securities Act
provided by Section 3(a)(10) thereof. This transaction has not been approved
or disapproved by the US Securities and Exchange Commission (the
"Commission"), nor has the Commission or any US state securities commission
passed upon the merits or fairness of the transaction nor upon the adequacy
or accuracy of the information contained in this document. Any representation
to the contrary is a criminal offence in the United States. The announcement
has been prepared in accordance with English law and the Code and information
disclosed may not be the same as that which would have been prepared in
accordance with the laws of jurisdictions outside England.
Dealing disclosure requirements
Under the provisions of Rule 8.3 of the UK Takeover Code, if any person is,
or becomes, "interested" (directly or indirectly) in 1 per cent. or more of
any class of "relevant securities" of Aquarius or of Ridge, all "dealings" in
any "relevant securities" of that company (including by means of an option in
respect of, or a derivative referenced to, any such "relevant securities")
must be publicly disclosed by no later than 3.30 pm (GMT) on the London
business day following the date of the relevant transaction. This
requirement will continue until the date on which the offer becomes, or is
declared, unconditional as to acceptances, lapses or is otherwise withdrawn
or on which the "offer period" otherwise ends. If two or more persons act
together pursuant to an agreement or understanding, whether formal or
informal, to acquire an "interest" in "relevant securities" of Aquarius or
Ridge, they will be deemed to be a single person for the purpose of Rule 8.3.
Under the provisions of Rule 8.1 of the UK Takeover Code, all "dealings" in
"relevant securities" of Aquarius or of Ridge by Aquarius or Ridge, or by any
of their respective "associates", must be disclosed by no later than 12.00
noon (GMT) on the London business day following the date of the relevant
transaction.
A disclosure table, giving details of the companies in whose "relevant
securities" "dealings" should be disclosed, and the number of such securities
in issue, can be found on the Takeover Panel`s website at
www.thetakeoverpanel.org.uk.
"Interests in securities" arise, in summary, when a person has long economic
exposure, whether conditional or absolute, to changes in the price of
securities. In particular, a person will be treated as having an "interest"
by virtue of the ownership or control of securities, or by virtue of any
option in respect of, or derivative referenced to, securities.
Terms in quotation marks are defined in the UK Takeover Code, which can also
be found on the Panel`s website. If you are in any doubt as to whether or
not you are required to disclose a "dealing" under Rule 8, you should consult
the Panel.
A copy of this announcement will be available on Aquarius` website
(www.aquariusplatinum.com).
Date: 14/07/2009 08:20:01 Produced by the JSE SENS Department.
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