15th Sep 2006 08:00
African Platinum Plc15 September 2006 African Platinum plcTicker: APPIndex: AIMSector: Platinum and precious metals AFPLATS SIGNS OFFTAKE AGREEMENT WITH IMPALA AND STARTS PRE-CONSTRUCTION WORK London, 15 September 2006 - London-listed platinum exploration and developmentcompany African Platinum (Afplats) today announced that it has reached anagreement with Impala Refining Services (IRS) in terms of which IRS willpurchase all the concentrate produced by the Leeuwkop project for a 10-yearperiod from the start of production. The contract is renewable thereafter for afurther five years. The first phase of the 92-million ounce Leeuwkop project, on the Western Limb ofSouth Africa's Bushveld Complex, is scheduled to produce 300 000 ounces of 4E(the three platinum group metals plus gold) concentrate per year for more than20 years. The definitive feasibility study on the project was completed byAfplats earlier this year and fundraising arrangements are currently beingfinalised. The agreement with IRS allows Afplats to undertake its own smelter testwork on aportion of the concentrate for three years in order to develop a fullunderstanding of its metallurgical response. This information will be essentialin the future expansion studies and allow Afplats to consider the possibility ofcommissioning its own smelting facilities as part of the Greater LeeuwkopProject. Afplats chief executive Roy Pitchford said the company was very pleased to haveconcluded the agreement with IRS, the world's largest purchaser of platinumconcentrate, on what it considered to be favourable terms. "By providing certainty of offtake, it ticks a key box in the fundraisingrequirements list and therefore represents another major advance in thedevelopment of this project," he said. Pitchford also noted that preparatory work for the start of construction ofLeeuwkop's Phase 1 was progressing well. "Shaft Sinkers have completed 80% of the detailed design for the shaft andassociated infrastructure with final completion due later this year. Agreementshave been signed with Eskom on both construction power and the main power supplywith construction of temporary power due to start in October. A final designfor the water supply has been issued to contractors to allow construction tostart in November. The relevant agreements with the water provider, MadibengMunicipality, have been concluded. A contractor will start building theconstruction access road next week in order to complete it by November beforethe onset of the wet season." "All of these activities highlight the momentum that Afplats is gaining as itmoves rapidly toward the development of the Leeuwkop Project," Pitchford said. AFRICAN PLATINUM PLC ENQUIRIES:Chief Executive - Roy Pitchford - +27 (0)82 419 2581 or +44 (0)77 9390 9985Investor & Media Relations - Kathy du Plessis - +27 (0)11 728 4701, +27 (0)83 266 5847 (Mobile) or [email protected]: 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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