| Mon 26 Apr 2010, 13:30 | | NHM - Northam welcomes new independent foreign investor |
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NHM
NHM
NHM - Northam welcomes new, independent foreign investor
NORTHAM PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1977/003282/06)
Share code: NHM ISIN: ZAE000030912
("Northam Platinum" or "the company")
Northam welcomes new, independent foreign investor
Diversified miner ENRC takes 12% stake in local platinum producer
Johannesburg, 26 April 2010. Shareholders of Northam Platinum Limited (Northam)
are alerted to the announcement issued earlier today by Mvelaphanda Resources
Limited (Mvela Resources) advising of Mvela Resources` disposal of 12.2% of its
holding in Northam to the global diversified mining group Eurasian Natural
Resources Corporation plc (ENRC).
Commenting on the transaction, Northam CEO Glyn Lewis today welcomed the
presence of ENRC as a significant shareholder in the company: "The interest
that ENRC has demonstrated in Northam signals the potential that major global
mining groups see in the South African mining space, and in particular,
demonstrates confidence in the fundamentals of the platinum group metal (PGM)
sector".
"In addition," said Lewis, "the transaction provides an opportunity for the
diversification of Northam`s shareholder base. And, after Mvela Resources
completes its proposed unbundling, Northam`s free float will increase
significantly, improving the liquidity and ease of investing in Northam shares
in the market."
Northam`s current assets comprise the long-life Zondereinde platinum mine near
Thabazimbi, which produces some 300,000 ounces of PGMs per annum and as well as
the 103 million ounce Booysendal PGM project on the eastern limb of the Bushveld
complex. As a fully integrated producer, Northam is extremely well placed for
growth and industry consolidation in the future.
Work has recently started at the wholly-owned Booysendal project. The first
module of this project is likely to be in full production by August 2014, with
output of 130,000 ounces annually, thereby lifting the company`s total PGM
production by almost 40% to 430,000 ounces annually. The project will create
more than 1,000 jobs and will have a significant positive impact on a
particularly impoverished region of South Africa through employment, skills
development, local economic development and corporate social investment.
"Platinum group metals are once again demonstrating their strong fundamentals;
less than two years after the massive price slump in mid 2008 platinum is
trading at extremely healthy levels well above US$1 600/oz, and palladium at
over US$500, further bolstering the Zondereinde mine`s ability to continue to
generate cash as it has done over the years in market conditions considerably
less robust than we are seeing now.
Lewis concluded by saying: "We will, in due course, be giving shareholders
further updates on the Booysendal project. In the meantime we continue to
evaluate various project funding mechanisms which include a number of debt
funding options."
Note to editors
ENRC is one of the world`s leading diversified natural resource companies. It
operates six divisions, viz ferroalloys, iron ore, aluminium, energy, logistics
and other non-ferrous minerals. ENRC controls sizable reserves of chromium,
manganese, iron ore, bauxite, coal, copper and cobalt, supplemented by extensive
resources. ENRC is listed on the London Stock Exchange and the Kazakhstan Stock
Exchange.
Johannesburg
26 April 2010
Sponsor:
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 26/04/2010 13:30:02 Produced by the JSE SENS Department.
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