6th Dec 2006 09:07
African Platinum Plc06 December 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 anddevelopment company, announced today it had signed the definitive agreement onits flagship Leeuwkop project with the Bakwena Ba-Mogopa (Bakwena) traditionalcommunity, whereby the community will hold a 26% unencumbered shareholding inthe Leeuwkop project area. In terms of the agreement Afplats will hold 74% of Afplats (Pty) Ltd (APL), theentity holding the New Order Prospecting Right, and the Bakwena 26%. In returnfor increasing its shareholding from 50% to 74%, Afplats will provide the firstZAR1 billion of development capital for the Leeuwkop project and will also paythe Bakwena an amount of R7.5 million per year for eight years from the grantingof the mining right. Commenting on the agreement, CEO Roy Pitchford said that the structure of thetransaction enables the local community to be fully empowered from signaturedate due to the initial capital provided for by Afplats. "We believe that thisagreement represents one of the largest community based transactions to havebeen concluded in South Africa and provides for true broad based economicempowerment for our partners the Bakwena" said Pitchford. Pitchford also stated that the signed shareholders agreement would be submittedimmediately to the Department of Minerals and Energy. This document representsthe last submission that is required to be made with respect to both the MiningRight for Leeuwkop and the Kareepoort and Wolvekraal Prospecting Right. "Withthe submission of this document, we believe that we are very close to securingthe mining right that will enable Afplats to commence the development of theLeeuwkop Project". In the company's 2006 annual report, published last month, Afplats said Phase 1will be a 300 000 ounce 4E (platinum group elements, plus gold) per year miningand concentrating operation with a life of more than 20 years. However, Afplatsand its black economic empowerment partners have a resource base of 92 millionounces 4E in the Greater Leeuwkop Project area - exceeded only by the threemajor platinum group metal producers - and its eventual aim is to treble thesize of the Phase 1 operation through the development of two additional shaftsystems. 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 [email protected] Website: www.afplats.com DISCLAIMER: Investing in all equities, including natural resources-relatedequities, carries risks which should be taken into consideration when making aninvestment. This announcement contains forward-looking statements regardingAfrican Platinum plc, including the development of its mining developmentprojects. Actual results relating to any and all of these subjects may differmaterially from those presented. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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