| Wed 15 Feb 2006, 15:00 | | Barplats Investments Limited - Cautionary Announce |
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BPL
BPL
Barplats Investments Limited - Cautionary Announcement
Barplats Investments Limited
(Incorporated in the Republic of South Africa)
(Registration number 1987/004830/06)
Share code: BPL & ISIN: ZAE000028692
("Barplats" or "the Company")
CAUTIONARY ANNOUNCEMENT
The Platinum Consortium, comprised of Brier Global Limited ("Brier"), Flower
Valley Investment Inc.("Flower"), Photon Global Limited ("Photon") and Rivercity
Holdings Corp ("River"), which are the controlling shareholders of Barplats has
informed the Company that the shareholders of Brier, Flower and River have
conditionally sold their entire shareholding in these entities to Eastern
Platinum Limited, a mineral exploration company listed on the Toronto Stock
Exchange and the London Stock Exchange (on the alternative investment market)
("Eastplats")("the Transaction").
Barplats shareholders are referred to the detailed terms announcement on the
Transaction released by Eastplats today ("Terms Announcement"), the full text of
which is, for ease of reference, set out at the end of this cautionary
announcement and Barplats shareholders are encouraged to read it in its
entirety. The Terms Announcement can also be viewed on the website of Eastplats
on www.eastplats.com.
Brier beneficially holds 71 500 000 Barplats shares representing approximately
23.8% of the issued share capital of Barplats, Flower beneficially holds 68 500
000 Barplats shares representing approximately 22.8% of the issued share capital
of Barplats and River beneficially holds 70 000 000 Barplats shares representing
approximately 23.3% of the issued share capital of Barplats. Photon is the
custodian managing the investments on behalf of Brier, Flower and River.
As the details relating to how the Transaction, if successfully concluded, will
impact Barplats have not yet been finalised, shareholders are advised to
exercise caution when dealing in their Barplats securities until a further
announcement is made.
15 February 2006
Corporate Adviser and South African Investment Bank
Nedbank Capital
Sponsor to Barplats
Nedbank Capital
Eastplats announcement as released on the Toronto Stock Exchange and London
Stock Exchange:
EASTERN PLATINUM LIMITED
#408 - 837 West Hastings Street
Vancouver, BC, Canada, V6C 3N6
Tel: 604-685-6851 & Fax: 604-685-6493
Website: www.eastplats.com
Email: info@eastplats.com
Date: February 15, 2006
Trading Symbol: ELR (TSX & AIM)
EASTPLATS TO ACQUIRE INTEREST IN TWO PRODUCING PLATINUM MINES AND ESTABLISH A 86
MILLION OUNCE PGM RESOURCE BASE
The Acquisition results in significant benefits and synergies, including:
- Profitable current production of approximately 100,000 oz of PGM per annum
from two mines at Crocodile River
- An 86 million oz PGM resource base
- Future production expansion to 250,000 oz PGM per annum at Crocodile River
- Two new mines to commence production in 2007
- A PGM beneficiation plant
- A proven and experienced operational and development management team
- Synergies for the development of Kennedy"s Vale and Spitzkop
- Water rights for the development of Kennedy"s Vale and Spitzkop.
- Fully BEE compliant
- Access to international capital
Eastern Platinum Limited ("Eastplats") is pleased to announce that it has
entered into an agreement (the " Agreement") with the shareholders of three
private companies to acquire the entire shareholding of those companies (the
"Acquisition"), the combined assets of which are 210,000,000 common shares of
Barplats Investments Limited ("Barplats") representing a 69% interest in
Barplats, a platinum group metals (PGM) producing company listed on the
Johannesburg Stock Exchange ("JSE"). Consideration for the acquisition is
288,585,122 shares of Eastplats and a cash payment of Cdn$27,708,597.
As a condition of the closing of the Acquisition, Eastplats is to complete an
equity financing of a minimum of Cdn$100,000,000, shall have acquired an
outstanding convertible loan to Barplats of approximately Cdn$6,900,000 and
shall retire or replace a ZAR100 million loan (approximately Cdn$18.5 million)
secured by a pledge of 100,000,000 of the Barplats shares.
Barplats
Barplats is a mining company listed on the JSE and trades under the symbol BPL.
Barplats" core business is the mining and processing of PGM in South Africa"s
Bushveld Igneous Complex ("the Bushveld"), the largest source of PGM in the
world. Barplats" two main assets are the Crocodile River mines on the western
limb of the Bushveld located near Brits in the Nort West Province and the
Kennedy"s Vale project on the eastern limb of the Bushveld located near
Steelpoort in Mpumalanga Province, which is immediately adjacent to Eastplats"
Spitzkop project. Crocodile River was re-commissioned using traditional mining
methods and became profitable in 2005, and includes the Maroelabult and
Zandfontein mines and the Crocette deposit.
"This acquisition will establish Eastplats as a current producer and significant
player in the platinum sector. We become an immediate producer with significant
production growth under development with an established operations and
development team at Barplats, and effect a synergistic merger of the Spitzkop
and Kennedy"s Vale deposits. We do not contemplate any management changes at
Barplats and look forward to working with the Barplats team to become a major
producer of platinum as we continue to grow the current production at Crocodile
River and move the Kennedy"s Vale/Spitzkop complex into production." stated Ian
Rozier, President and CEO of Eastplats.
"In less than two years we have acquired a resource base comprising 86 million
PGM oz contained in shallow, high grade, platinum and rhodium rich deposits. On
the Western Bushveld, the Crocodile River mines will become significant
producers of PGM. On the Eastern Bushveld, Kennedy"s Vale and Spitzkop can be
combined into a single operation that will form one of the largest
underdeveloped deposits in South Africa. With this transaction we are one step
closer to our corporate objective to grow Eastplats into a major PGM producer."
Western Bushveld
At Crocodile River, the two mines supply ore to a common concentrator.
Production of PGM on both mines is from the UG2 Reef which has an average
thickness of 1.4m and an average dip of 18 degrees. The Zandfontein mine is
accessed via four separate declines and reef development is over 33,000 meters.
At the Maroelabult mine, primary access consists of two declines and reef
development is over 7000 meters.
Crocodile River currently employs over 1300 people and has an excellent safety
record, having recorded zero fatalities in 2006 or in 2005. Currently the two
mines have a production rate of 60,000 tonnes per month ("tpm") and planned to
increase this to 180,000 tpm over the next 24 months. The mine re-commissioning
phase has progressed ahead of schedule over the last 9 months and yielded better
than expected results; operational profitability has already been achieved and
over 46,000 oz of PGM have been produced since the plant was re-commissioned in
May 2005. Additionally, the beneficiation plant at Crocodile River has recently
been extensively refurbished and is operating as a state of the art facility.
PGM production at Crocette, which lies to the west of the Zandfontein and
Maroelabult mines is expected to commence within 12 months, with initial
operations from an open pit followed by a decline and underground operations.
Preliminary plans would result in a 40,000 tpm operation with a 10 year mine
life. Output from Crocodile River is anticipated to rise to 130,000 oz by the
end of calendar 2006, 190,000 oz by the end of calendar 2007 and 250,000 oz per
annum by mid 2008.
Eastern Bushveld
With the adjoining Kennedy"s Vale and Spitzkop properties on the eastern limb
under common development, an integrated feasibility study will be developed that
will allow the most efficient approach to mining the very large platinum and
rhodium rich UG2 resource. Both properties have surface outcrops of UG2 reef
that could allow early production for a low capital investment. The envisaged
mining technique and design is likely to be very similar to that currently
employed at Crocodile River. The water rights associated with Kennedy"s Vale
could be utilized for a common processing plant for production from both
properties. With the technical, development and operating skills of the Barplats
team, Eastplats is positioned to fast track the development.
Assuming a positive feasibility study, Eastplats" Mareesburg resource will give
the company incremental near term production in 2007.
Mineral Resources
Western Bushveld - Crocodile River
The resource contained in the UG2 reef as reported by RSG Global in an
independent NI43-101 technical report dated January 1, 2006 was as follows;
Measured Resource 4.2 Mt @ 4.41g/t (3PGE +Au) (0.6 M oz PGM)
Indicated Resource 22.6 Mt @ 4.41g/t (3 PGE + Au) (3.2 M oz PGM)
Inferred Resource 51.5 Mt @ 4.56g/t (3PGE + Au) (7.6 M oz PGM)
The metal contribution (or prill splits) for the resource at CRM are Pt 62.2%;
Pd 27.0%; Rh 10.1%; and Au 0. 6%.
Eastern Bushveld - Kennedy"s Vale
Barplats holds the PGM mineral rights to the farms Kennedy"s Vale 361 KT, De
Goedeverwachting 332KT, Belveder 362 KT and portions of Tweefontein 360 KT and
Boschkloof 331 KT, in total comprising 6,734 hectares, and collectively known as
the Kennedy"s Vale PGM project. Mineral Resource estimates in the UG2 reef at
Kennedy"s Vale as reported by RSG Global in an independent NI43-101 technical
report dated January 1, 2006 were as follows;
Measured Resource 152.1 Mt @ 5.41 g/t (5PGE + Au) (26.5 M oz PGM)
Indicated Resource 70.0 Mt @ 6.17 g/t (5PGE + Au) (13.9 M oz PGM)
The metal contribution (or prill splits) for the UG2 Reef at Kennedy"s Vale are
Pt 44.6%, Pd 29.9%, Rh 8.3%, Ru 13%, Ir 3.2% and Au 1%.
Mineral Resource Estimates for the Merensky Reef at Kennedy"s Vale were reported
by Barplats in 2005 as follows;
Indicated Resource 96.5 Mt @ 3.88 g/t (5PGE + Au) (12.1 M oz PGM)
Inferred Resource 67.3 Mt @ 3.44 g/t (5PGE + Au) ( 7.5 M oz PGM)
The metal contribution (or prill splits) for the Merensky Reef at Kennedy"s Vale
are; Pt 53%, Pd 30.1%, Rh 2.9%, Ru 6.1 %, Ir 1% and Au 6.1%.
Estimates for the Merensky Reef at Kennedy"s Vale are `historical resources" and
should not be relied upon.
From the various resource estimates reported on the Crocodile River, Kennedy"s
Vale, Spitzkop and Mareesburg PGM projects, total contained PGM ounces in the
reported resource base that will be controlled by Eastplats are summarized as
follows;
Crocodile River (Measured and Indicated) 3.8 M oz
Crocodile River (Inferred) 7.6 M oz
Spitzkop (Measured and Indicated) 13.0 M oz
Kennedy"s Vale (Measured and Indicated) 52.5 M oz
Kennedy"s Vale (Inferred) 7.5 M oz
Mareesburg (Measured and Indicated) 2.0 M oz
"With the Acquisition, the company will have a resource base containing over 86
million ounces of PGM. This portfolio of high grade, platinum and rhodium rich
deposits is strategically located for integrated production and future
expansion." stated Ian Rozier, President and CEO of Eastplats.
Closing of the Acquisition remains subject to completion of satisfactory due
diligence, receipt of all necessary regulatory approvals, including acceptance
of the Toronto Stock Exchange and approval by the Board of Directors of
Eastplats. The Agreement provides that termination by either side, other than as
a result of unsatisfactory due diligence or fundamental breach, will trigger a
Cdn$3,000,000 break fee.
For this transaction, Eastplats is being advised by Canaccord Capital
Corporation and the vendors are being advised by GMP Securities Ltd.
The company will host a conference call on Wednesday, February 15, 2006 at 9:00
a.m. Pacific Standard Time (12:00 p.m. Eastern) to outline and discuss the
acquisition. The conference call may be accessed by dialing 1-877-385-4099 in
Canada and the United States, or +1-604-899-2339 internationally, using
conference access code: 5535810#. The conference call will be archived for later
playback until March 01, 2006 and can be accessed by dialing 1-877-653-0545
within North America or +1-403-232-0933 internationally using conference I.D.
number: 285852.
For further information, please contact:
Mr. Ian Rozier, M.Sc., P. Eng., President & CEO
Email: info@eastplats.com
Website: www.eastplats.com
#408 - 837 West Hastings Street
Vancouver, BC, Canada, V6C 3N6
Tel: 604-685-6851 & Fax: 604-685-6493
Further information on Barplats can be found on the company"s website:
www.barplats.net.
Caution Regarding Forward Looking Statements:
Safe Harbor Statement under the United States Private Securities Litigation
Reform Act of 1995: Except for the statements of historical fact contained
herein, the information presented constitutes "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements, including but not limited to those with respect
to the price of gold, silver and copper, the timing and amount of estimated
future production, costs of production, reserve determination and reserve
conversion rates, involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievement of the
Company to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Such
factors include, among others, risks relating to the integration of the
acquisition, risks relating to international operations, risks relating to joint
venture operations, the actual results of current exploration activities, actual
results of current reclamation activities, conclusions of economic evaluations,
changes in project parameters as plans continue to be refined, future prices of
gold, silver and copper, as well as those factors discussed in the section
entitled "Risk Factors" in the Form 20-F as on file with the Securities and
Exchange Commission in Washington, D.C. Although the Company has attempted to
identify important factors that could cause actual results to differ materially,
there may be other factors that cause results not to be as anticipated,
estimated or intended. There can be no assurance that such 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.
Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated
and Inferred Resources:
This presentation uses the terms "Measured", "Indicated" and "Inferred"
Resources. U.S. investors are advised that while such terms are recognized and
required by Canadian regulations, the Securities and Exchange Commission does
not recognize them. "Inferred Resources" have a great amount of uncertainty as
to their existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an inferred resource
will ever be upgraded to a higher category. Under Canadian rules, estimates of
Inferred Resources may not form the basis of feasibility or other economic
studies. U.S. investors are cautioned not to assume that all or any part of
Measured or Indicated Resources will ever be converted into reserves. U.S.
investors are also cautioned not to assume that all or any part of an Inferred
Mineral Resource exists, or is economically or legally mineable.
Date: 15/02/2006 03:00:09 PM Produced by the JSE SENS Department
