Anooraq announces progress update on empowerment transaction with Anglo Platinum
November 14 2008 - 9:00AM
PR Newswire (US)
VANCOUVER, Nov. 14 /PRNewswire-FirstCall/ -- Anooraq Resources
Corporation ("Anooraq" or the "Company") (TSXV:ARQ; AMEX:ANO;
JSE:ARQ) announces an update on the proposed transaction whereby
Anooraq would purchase from Anglo Platinum Limited ("Anglo
Platinum") an effective 51% of the Lebowa Platinum Mine ("Lebowa")
and an effective 1% controlling interest in each of the Ga-Phasha,
Boikgantsho and Kwanda joint venture projects located in South
Africa, which are currently held by Anooraq and Anglo Platinum in
50-50 joint ventures ("the Transaction") as well as an update on
the financing strategy associated with the Transaction.
Shareholders are also referred to the Company's October 2, 2008
news release, which provided the first update on the anticipated
Anooraq financing strategy for the Transaction. Detailed terms of
the Transaction were announced on April 14, 2008. As set out in
this announcement, a component of the Transaction, which informed
commercial terms, was the development and financing of the
Middelpunt Hill UG2 expansion project ("MPH Project") at Lebowa. It
was announced that the MPH Project would be developed by Anooraq
and Anglo Platinum as part of the then current mine plan and
capital development program for Lebowa, which had been approved by
Anglo Platinum in May 2007. During the period July 2008 to October
2008, global economic conditions deteriorated significantly,
contributing to a material decline in platinum group metal prices
and resulting in constrained debt and equity capital markets. On
October 23, 2008, Anglo Platinum announced that it was reviewing
the costing and scheduling of all its capital projects, including
the MPH Project, in light of current metal price levels and
uncertainty in global markets. Anooraq is participating in the
review of the MPH Project costing and scheduling. Furthermore,
Anglo Platinum and Anooraq have agreed to review the current Anglo
Platinum approved mine plan and capital program at Lebowa. As a
result of these developments, Anglo Platinum and its parent
company, Anglo American plc, and Anooraq and its largest
shareholder, Pelawan Investments (Pty) Ltd, (the "Parties") are
currently in advanced stage discussions surrounding the
Transaction, as well as the associated financing strategy, and will
provide a detailed Transaction update to the market as soon as
possible after such discussions have been concluded. The Parties
remain committed to concluding the Transaction as soon as
practically possible. However, as a result of the review process
referred to above, the Transaction will not close on November 30,
2008, as originally anticipated. The Parties are confident that the
Transaction will close during the first quarter of 2009. Given the
delay in Transaction implementation, Anglo Platinum has agreed to
increase its existing loan facility to Anooraq by an amount of
South African Rand 30 million (Canadian Dollar 3.5 million). ON
BEHALF OF THE BOARD OF DIRECTORS OF ANOORAQ Philip Kotze President
and CEO Anooraq Resources Corporation The TSX Venture Exchange does
not accept responsibility for the adequacy or accuracy of this
release. The American Stock Exchange has neither approved nor
disapproved the contents of this press release. Cautionary and
Forward Looking Information This release includes certain
statements that may be deemed "forward looking statements". All
statements in this release, other than statements of historical
facts, that address potential acquisitions, future production,
reserve potential, exploration drilling, exploitation activities
and events or developments that Anooraq expects are forward looking
statements. Anooraq believes that such forward looking statements
are based on reasonable assumptions, including assumptions that:
the Lebowa Transaction will complete; Lebowa will continue to
achieve production levels similar to previous years; the planned
Lebowa expansions will be completed and successful; Anooraq will be
able to secure future debt and equity financing on favourable
terms; and the Ga-Phasha and Platreef Project exploration results
will continue to be positive. Forward looking statements however,
are not guarantees of future performance and actual results or
developments may differ materially from those in forward looking
statements. Factors that could cause actual results to differ
materially from those in forward looking statements include market
prices, exploitation and exploration successes, changes in and the
effect of government policies with respect to mining and natural
resource exploration and exploitation and continued availability of
capital and financing, and general economic, market or business
conditions. Investors are cautioned that any such statements are
not guarantees of future performance and those actual results or
developments may differ materially from those projected in the
forward looking statements. For further information on Anooraq,
investors should review the Company's annual information form filed
on http://www.sedar.com/ or its form 20-F with the United States
Securities and Exchange Commission and its other home jurisdiction
filings that are available at http://www.sedar.com/. DATASOURCE:
Anooraq Resources Corporation CONTACT: on Anooraq and its South
African properties, please visit our website
http://www.anooraqresources.com/ or call investor services in South
Africa at +27 11 883 0831 or in North America at 1-800-667-2114
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