London -- (MARKET WIRE) -- December 6, 2006 --African Platinum plc / Ticker: APP / Index: AIM / Sector: Platinum and precious metals
6 December 2006
AFRICAN PLATINUM SIGNS DEFINITIVE AGREEMENTS
WITH BAKWENA BA-MOGOPA COMMUNITY
Overview
- Agreement signed with Bakwena Ba-Mogopa - final regulatory requirement for
developing the Leeuwkop Platinum Mine
- Major resource base - 92 million ounces 4E - exceeded only by the three major
platinum group metal producers
- Phase 1 - to develop a 300,000 ounce 4E per year mining and concentrating
operation with a life of more than 20 years - longer term aim to treble
production
African Platinum plc ('Afplats'), the AIM-listed platinum exploration and
development company, announced today it had signed the definitive agreement on
its flagship Leeuwkop project with the Bakwena Ba-Mogopa (Bakwena) traditional
community, whereby the community will hold a 26% unencumbered shareholding in
the Leeuwkop project area.
In terms of the agreement Afplats will hold 74% of Afplats (Pty) Ltd (APL), the
entity holding the New Order Prospecting Right, and the Bakwena 26%. In return
for increasing its shareholding from 50% to 74%, Afplats will provide the first
ZAR1 billion of development capital for the Leeuwkop project and will also pay
the Bakwena an amount of R7.5 million per year for eight years from the granting
of the mining right.
Commenting on the agreement, CEO Roy Pitchford said that the structure of the
transaction enables the local community to be fully empowered from signature
date due to the initial capital provided for by Afplats. "We believe that this
agreement represents one of the largest community based transactions to have
been concluded in South Africa and provides for true broad based economic
empowerment for our partners the Bakwena" said Pitchford.
Pitchford also stated that the signed shareholders agreement would be submitted
immediately to the Department of Minerals and Energy. This document represents
the last submission that is required to be made with respect to both the Mining
Right for Leeuwkop and the Kareepoort and Wolvekraal Prospecting Right. "With
the submission of this document, we believe that we are very close to securing
the mining right that will enable Afplats to commence the development of the
Leeuwkop Project".
In the company's 2006 annual report, published last month, Afplats said Phase 1
will be a 300 000 ounce 4E (platinum group elements, plus gold) per year mining
and concentrating operation with a life of more than 20 years. However, Afplats
and its black economic empowerment partners have a resource base of 92 million
ounces 4E in the Greater Leeuwkop Project area - exceeded only by the three
major platinum group metal producers - and its eventual aim is to treble the
size of the Phase 1 operation through the development of two additional shaft
systems.
AFRICAN PLATINUM PLC ENQUIRIES:
Roy Pitchford - +27 (0)82 419 2581 or +44 (0)11 467 1858
Russell Lamming - +27 (0)83 556 8352 or +27 (0)11 467 1858
info@afplats.com
Website: www.afplats.com
DISCLAIMER: Investing in all equities, including natural resources-related
equities, carries risks which should be taken into consideration when making an
investment. This announcement contains forward-looking statements regarding
African Platinum plc, including the development of its mining development
projects. Actual results relating to any and all of these subjects may differ
materially from those presented.
This information is provided by RNS
The company news service from the London Stock Exchange