19th Dec 2005 16:30
AQUARIUS PLATINUM LIMITED19 December 2005MARIKANA MINE UPDATEAquarius Platinum Limited ("Aquarius") today announces that its 50.5% ownedsubsidiary Aquarius Platinum (South Africa) (Proprietary) Limited ("AQPSA") hasregrettably taken the decision to rescind the Marikana mining contract withMoolman Mining ("Moolman"), its principle mining contractor at Marikana, basedon an actionable misrepresentation on the part of Moolman. Thismisrepresentation induced AQPSA to conclude the mining contract. AQPSA'sdecision is based on external advice from Counsel and a leading forensicaccountant. Information obtained from a recent KMPG audit (as requested byMoolman), gave rise to AQPSA's investigation and decision. AQPSA will now claimdamages against Moolman, estimated to be in excess of Rand 1 billion.The Board of AQPSA believes the operational and financial impact of this actionwill be of a short-term nature and has taken steps to manage and accordinglymitigate it. Discussions have been entered into with a third party miningcontractor, in anticipation of the rescission of the mining contract. TheMarikana mine, now part of the recently announced the Marikana Pool and ShareAgreement ("P&SA2"), is expected to appoint a contractor in substitution forMoolman in the very near future.The Marikana mine has previously recorded and announced an on-mine loss of$18.6 million (made up of EBITDA - $4.3 million & Amortisation charges - $14.3million) for financial year ended June 2005. With the implementation of P&SA2,it is anticipated that the mine will return a significantly improved financialresult for the current financial year as a result of the inherent synergies(including improved operating costs and lowered amortisation charges) of the P&SA2 transaction.For further information please contact:In South Africa:Stuart MurrayExecutive ChairmanAquarius Platinum (South Africa) (Pty) Limited+27 11 455 2050+27 82 441 0326or visit: www.aquariusplatinum.com(incorporated in Bermuda - Registration No: EC26290)CLARENDON HOUSE, 2 CHURCH STREET, HAMILTONPO BOX HM666, HAMILTON HMCX, BERMUDAEMAIL: [email protected] WEB SITE: www.aquariusplatinum.comENDAQUARIUS PLATINUM LIMITEDRelated Shares:
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