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Trading Symbol: ELR (TSX); EPS (JSE)
VANCOUVER, BC, July 22, 2020 /CNW/ - Eastern Platinum
Limited ("Eastplats" or the "Company") announces that
its subsidiary, Barplats Mines (Pty) Ltd. ("Barplats"), has
entered into a project framework agreement (the "Project
Agreement") with Advanced Beneficiation Technologies
Proprietary Limited of South
Africa ("ABT"), an organization fully compliant as a
Black Economic Empowerment Entrepreneur ("BEE Entrepreneur")
and a member of the Omang Group of companies, to complete an
independent feasibility study (the "Feasibility Study") for
the development and construction of a new modular plant with a
capacity to process the platinum group metals ("PGMs") of
the tailings redeposited at a designated area of the Zandfontein
Tailings Dam (the "Zandfontein Tailings Dam") situated at
the Crocodile River Mine in South
Africa at a rate of between 20,000 and 50,000 tons per month
(the final rate is dependent on the optimal outcome of the
Feasibility Study) (the "Project").
There are several milestones required by Eastplats and the
Project Agreement to complete and establish this Project, including
the completion (at ABT's risk and cost), assessment and acceptance
of the Feasibility Study expected during November 2020, to be followed by the
conclusion of various agreements, including a joint venture
agreement between Barplats and ABT and procuring appropriate
funding.
Barplats will supply the material and related infrastructure for
PGMs processing from the Zandfontein Tailings Dam, establish an
appropriate off-take agreement, and support the Project through
both executive management and administration.
ABT, as the intended operator, is responsible to complete the
Feasibility Study (including appropriate drilling), secure
appropriate funding, oversee the construction and commissioning and
operate the Project as governed by the Project Agreement.
Diana Hu, the CEO of Eastplats,
stated, "We are very pleased to sign this Project Agreement with
ABT and begin this Feasibility Study and the Project. This venture
is a new potential revenue source for the Company without any
additional capital funding obligations and an opportunity to
recover PGMs from the tailings redeposited onto the Zandfontein
Tailings Dam."
COVID-19
The effects of COVID-19 are changing rapidly and the Company
cannot reasonably estimate at this time the impact of COVID-19 on
this Project, current operations, new lockdowns or policies imposed
by the Government of South Africa
all of which could potentially have material adverse effects on the
Company's business, liquidity and cashflows.
About Eastern Platinum Limited
Eastplats owns directly and indirectly a number of PGMs and
chrome assets in the Republic of South
Africa. All of the Company's properties are situated on the
western and eastern limbs of the Bushveld Complex, the geological
environment that hosts approximately 80% of the world's PGM-bearing
ore.
Operations at the Crocodile River mine currently include
re-mining and processing its tailings resource, with an offtake of
the chrome concentrate from the Barplats Zandfontein UG2 tailings
facility ("Retreatment Project").
Cautionary Statement Regarding Forward-Looking
Information
This press release contains "forward-looking statements" or
"forward-looking information" (collectively referred to herein as
"forward-looking statements") within the meaning of
applicable securities legislation. Such forward-looking
statements include, without limitation, forecasts, estimates,
expectations and objectives for future operations that are subject
to a number of assumptions, risks and uncertainties, many of which
are beyond the control of the Company. Forward-looking statements
are statements that are not historical facts and are generally, but
not always, identified by the words "will", "plan", "intends",
"may", "will", "could", "expects", "anticipates" and similar
expressions. Further disclosure of the risks and uncertainties
facing the Company and other forward-looking statements are
discussed in the Company's most recent Annual Information Form
available under the Company's profile on www.sedar.com.
In particular, this press release contains forward-looking
statements pertaining to: completion and assessment of the
Feasibility Study and projected timelines for the commencement of
operating the Project. These forward-looking statements are based
on assumptions made by and information currently available to the
Company. Although management considers these assumptions to be
reasonable based on information currently available to it, they may
prove to be incorrect. By their very nature, forward-looking
statements involve inherent risks and uncertainties and readers are
cautioned not to place undue reliance on these statements as a
number of factors could cause actual results to differ materially
from the beliefs, plans, objectives, expectations, estimates and
intentions expressed in such forward-looking statements. These
factors include, but are not limited to, unanticipated problems
that may arise in our production processes, commodity prices, lower
than expected grades and quantities of resources, need for
additional funding and availability of such additional funding on
acceptable terms, economic conditions, currency fluctuations,
competition and regulations, legal proceedings and risks related to
operations in foreign countries.
All forward-looking statements in this press release are
expressly qualified in their entirety by this cautionary statement,
the "Cautionary Statement on Forward-Looking Information"
section contained in the Company's most recent Management's
Discussion and Analysis available under the Company's profile on
www.sedar.com. The forward-looking statements in this press release
are made as of the date they are given and, except as required by
applicable securities laws, the Company disclaims any intention or
obligation, and does not undertake, to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information
contained herein.
SOURCE Eastern Platinum Limited