Crocodile River Mine to Be Placed on Care and Maintenance; Section 52 Notice Issued
June 24 2013 - 7:22PM
Marketwired
Eastern Platinum Limited (TSX:ELR)(AIM:ELR)(JSE:EPS) ("Eastplats"
or the "Company") reports that a Section 52 Notice in terms of the
Mineral and Petroleum Resources Development Act ("MRPDA") of 2002
was submitted to the Minister of Mineral Resources of South Africa
on June 22, 2013 with respect to the curtailing of mining
operations at the Crocodile River Mine ("CRM"). This follows the
Company's decision to suspend funding for CRM for the reasons
outlined in the news release of April 19, 2013.
On April 22, 2013 Barplats Mines Limited ("BML") issued notices
to employees in terms of Section 189 of the Labour Relations Act 66
of 1995 ("the LRA") with respect to a Care and Maintenance and
Restructuring proposal for CRM. BML also requested that the
Commission for Conciliation, Mediation and Arbitration appoint a
facilitator for the requisite 60-day consultation process. This
consultation process with the unions and other representatives
ended upon the expiry of the 60-day period on June 21, 2013.
Three unions representing 47% of the total workforce concluded a
Settlement Agreement with the Company and have recommended
acceptance to their Members in return for full and final settlement
of all and any claims between the Company and Members of those
unions. One union has not recommended acceptance of the Company's
retrenchment proposal. Employees who do not accept the full and
final settlement proposal will receive the Company's retrenchment
package made at the final facilitated consultation meeting.
As stated in the Section 52 Notice, mining operations at CRM are
to be scaled down with the effect that approximately 92% of CRM's
employees are either to be retrenched or their employment
terminated by mutual agreement. The Company will be meeting all its
commitments with respect to its environmental management programs
and the relevant aspects of its Social and Labour Plan.
Production at CRM will be scaled down with effect from June 22
and will cease by the end of July 2013. Production will not resume
until it is clear that there can be economic and sustainable
production from CRM.
Eastplats has made a significant investment in infrastructure at
CRM, and BML's Care and Maintenance proposal for the mine will
ensure that the mine remains in a state of operational readiness in
order to take advantage of this investment and to secure future
employment opportunities for when economic conditions and the
operating environment improve.
"This is a very regrettable outcome. However, BML's Care and
Maintenance proposal is the best for all stake holders since nobody
wants to see the mine close permanently. We have been struggling
through a perfect storm of increasing costs on all fronts and
depressed metal prices. With ongoing labour unrest that continues
to negatively impact productivity throughout the South African
mining sector, the stagnant commodity market, and rising costs, it
has become impossible to justify continued production operations at
this time," stated Ian Rozier, President and CEO.
Total shares issued and outstanding - 928,187,807
Cautionary Statement on Forward-Looking Information
This press release, which contains certain forward-looking
statements, is intended to provide readers with a reasonable basis
for assessing the financial performance of the Company. All
statements, other than statements of historical fact, are
forward-looking statements. The words "believe", "expect",
"anticipate", "contemplate", "target", "plan", "intends",
"continue", "budget", "estimate", "may", "will", "schedule" and
similar expressions identify forward looking statements. These
forward-looking statements pertain to assumptions regarding the
price of PGMs, fluctuations in currency markets (specifically the
Rand and the U.S. dollar), the future funding of the Company's
projects, the future development of the Company's projects, the
Company's plans for its properties, the anticipated timing for the
awarding of tenders, and the accounting policies issued but not yet
effective for the Company. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by the Company, are inherently subject
to significant business, economic and competitive uncertainties and
contingencies. Known and unknown factors could cause actual results
to differ materially from those projected in the forward-looking
statements. Such factors include, but are not limited to, the risk
of fluctuations in the assumed exchange rates of currencies that
directly impact the Company, such as Canadian dollar, South African
Rand and U.S. dollar, the risk of fluctuations in the assumed
prices of PGM and other commodities, the risk of changes in
government legislation, taxation, controls, regulations and
political or economic developments in Canada, the United States,
South Africa, or Barbados or other countries in which the Company
carries or may carry on business in the future, risks associated
with mining or development activities, the speculative nature of
exploration and development, including the risk of obtaining
necessary licenses and permits, and assumed quantities or grades of
reserves. Many of these uncertainties and contingencies can affect
the Company's actual results and could cause actual results to
differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, the Company.
Readers are cautioned that forward-looking statements are not
guarantees of future performance. There can be no assurance that
such statements will prove to be accurate and actual results and
future events could differ materially from those acknowledged in
such statements. Specific reference is made to the Company's most
recent Annual Information Form on file with Canadian provincial
securities regulatory authorities for a discussion of some of the
factors underlying forward-looking statements.
The Company disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except to the extent
required by applicable laws.
No stock exchange, securities commission or other regulatory
authority has approved or disapproved the information contained
herein.
Contacts: Eastern Platinum Limited Ian Rozier President &
C.E.O. +1-604-685-6851 +1-604-685-6493 (FAX)info@eastplats.com
www.eastplats.com NOMAD: Canaccord Genuity Limited, London Andrew
Chubb +44 (0) 207 7523 8000 NOMAD: Canaccord Genuity Limited,
London Ross Allister +44 (0) 207 7523 8000 JSE SPONSOR: PSG Capital
(Pty) Limited Johan Fourie +27 21 887 9602johanf@psgcapital.com
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