President Steyn Gold Mines Limited - Further Cauti
FURTHER CAUTIONARY ANNOUNCEMENT
On 11 September 2001 the directors cautioned that negotiations are taking
place that can, if successfully concluded, have a material effect on the
price of the Company's securities. The aims of the negotiations are to
broaden the shareholder base through international investors and to ensure
more diversified operational activities.
The evaluation of one of the targeted operations has now reached the stage
where the Company and Hydrosol Platinum Technologies Limited ("Hydrosol")
agreed on a business framework to form the basis of a joint venture entity.
Hydrosol is the licence holder of patented PlatSol PGM extraction
technology. This is a hydrometallurgical process and allows for economical
extraction of minerals from PGM concentrates derived from UG2 ore and
materials such as tailings or dumps that have previously been regarded as
impossible or uneconomical to extract. The technology is aimed at the
smaller producers and will open up a new dimension for the industry due to
its low cost and diversity.
The joint venture entity will allow the Company the opportunity to also
benefit from a number of projects that are presently being developed.
PlatSol is a further extension of the Company's drive to establish
technology-based value adding mining opportunities. As a PGM producer the
Company will be entrenched as a precious metal mining company.
The implementation of the joint venture entity is subject to a final due
diligence review and entering into a formal agreement by 15 October 2001, at
which time an announcement containing full details of the transaction and
the impact that it will have on the Company, will be made. Accordingly
shareholders are advised to continue exercising caution when dealing in the
Company's securities until a full announcement is made.
19 September 2001
Johannesburg
Corporate Adviser Sponsor
Argil Corporate Finance BoE Securities
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