| Wed 23 Mar 2011, 15:00 | | PLN - Platmin Limited - Platmin secures 6 Million 4E PGM ounces in The |
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PLN
PLN
PLN - Platmin Limited - Platmin secures 6 Million 4E PGM ounces in The
Contiguous Sedibelo West Property in a transforming acquisition
Platmin Limited
Incorporated in the accordance with the laws of Canada
Registration number: 610178-0
Share code on TSX: PPN
Share code on AIM: PPN
Share code on JSE: PLN
ISIN: CA72765Y1097
Platmin Limited
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.
Investment Bank and Sponsor: Investec Bank Limited
Date: 23/03/2011 15:00:01 Produced by the JSE SENS Department.
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