/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE
SERVICES/
Trading Symbol: ELR (TSX); EPS (JSE)
VANCOUVER, March 5, 2018 /CNW/ - Eastern Platinum
Limited ("Eastplats" or the "Company") and its
subsidiary Barplats Mines (Pty) Limited ("Barplats") are
pleased to announce they have entered into an agreement (the
"Agreement") with Union Goal Offshore Solution Limited
("Union Goal"). The Agreement provides for the construction,
mining and processing of the tailings resource, and the subsequent
offtake of chrome concentrate from, the Barplats Zandfontein UG2
tailings facility ("Retreatment Project") located at the
Crocodile River Mine in South Africa.
Union Goal will finance and supply to Barplats the chrome
processing circuit, related technology and knowhow (the "Chrome
Circuit") while Barplats will develop, mine and operate the
Retreatment Project. The Chrome Circuit is designed to improve on
recoveries of chrome concentrate compared to traditional technology
which could expand available resources for mining and processing.
The estimated capital requirements for Barplats are R164 (US
$14.0) million which are expected to
be funded from cash on hand, the upfront project payment from Union
Goal described below and revenue from the Retreatment Project. The
parties have pre-sourced equipment and the construction phase is
estimated to be seven-months. Eastplats anticipates the Retreatment
Project will result in revenue producing operations, through
offtake of the chrome concentrates produced to Union Goal, when
production commences during 2018.
Highlights
The Agreement provides, amongst other matters, for the
following:
- an upfront payment of R42.2 (US $3.6) million payable to Barplats from Union
Goal;
- Barplats will recover the Retreatment Project capital from
Union Goal during operations at a rate of R25 (US$2.14) /ROM per ton;
- Barplats will deliver all the chrome concentrate to Union Goal
from the Retreatment Project based on full cost recovery from Union
Goal of all operation costs for the mining, processing, deposition
and logistics;
- Union Goal shall additionally pay Barplats fees of R31.17
(US$2.66)/ROM per ton treated;
and
- deferred payment terms for the Chrome Circuit of up to 33
months subject to a Barplats put and Union Goal call option for the
re-purchase of the Chrome Circuit by Union Goal in the event either
party is not satisfied with the agreed pricing for the Chrome
Circuit once its operational capacity is established.
Diana Hu, CEO of the Company
commented "Eastplats is very pleased to come to an agreement with
Union Goal and begin construction immediately on the chrome
recovery project which will again establish Barplats as an
operator."
Union Goal's business partners include major direct mine
operators and traders of chrome ores and concentres. Union Goal
also deals directly with downstream consumers through trading,
direct and technological investments into ferro-chrome producers
and has other interests directly with the stainless-steel industry.
Union Goal has been in business for 15 years and has traded
more than one million tons of chrome ores and concentrates on
average during the past four years with average annual sales
reaching approximately US$200
million.
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 Annual Information Form
and Management's Discussion and Analysis which are available under
the Company's profile on www.sedar.com.
In particular, this press release contains forward-looking
statements pertaining to: extension of the life of the Retreatment
Project, estimated costs and timelines of construction, estimated
operations, capital cost and payment terms related to the Chrome
Circuit, estimated timelines for revenue production and anticipated
capital needs. 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, commodity prices, lower than expected grades and
quantities of resources, need for additional funding, availability
of such additional funding and that funding will be on acceptable
terms, economic conditions, currency fluctuations, competition and
regulations, legal proceedings and risks related to operations in
foreign countries.
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
to publicly 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