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Trading Symbol: ELR (TSX); EPS (JSE)
VANCOUVER, March 28, 2018 /CNW/ - Eastern Platinum
Limited ("Eastplats" or the "Company") is pleased to
report that it has filed its audited consolidated financial
statements, management's discussion and analysis and annual
information form for the year ended December
31, 2017. Eastplats is also pleased to announce that
Nigel K. Dentoom has agreed to join
the board of directors of Eastplats effective immediately. Below is
a summary of the Company's financial results and highlights for the
year ended December 31, 2017 (all
amounts in USD):
- cash and short-term investments of $25.5
million and working capital of $26.2
million at December 31, 2017
available for 2018;
- development work expended during the year was $1.6 million which provided Eastplats with
valuable technical and economic project data;
- net loss of $9.2 million (loss of
$0.08 per share) compared with
$55.1 million (loss of $0.55 per share) in 2016, an improvement of 83%;
and
- net operating cash flows used during the year was $7.8 million compared with $12.5 million in 2016, an improvement of
38%.
Construction of the Retreatment Project
As previously disclosed, on March 1,
2018, the Company entered into a framework agreement (the
"UG Agreement") with Union Goal Offshore Solutions Limited
("Union Goal") relating to construction, mining and
processing of the tailing resource and offtake of chrome
concentrate from Barplats Mines (Pty) Limited tailings facility
(the "Retreatment Project") located at the Company's
Crocodile River Mine in South
Africa ("CRM"). Construction is progressing well,
equipment has arrived at site and the Company is targeting Q3 for
commissioning with revenue expected in the fall of 2018. On
March 12, 2018, Union Goal made an
upfront payment of $3.6 million
(ZAR42,200) to Barplats Mines (Pty)
Limited pursuant to the terms of the UG Agreement.
Operating Highlights and Outlook
2017 was a strong year of development for Eastplats, culminating
in the execution of the UG Agreement and the initiation of
construction on the Retreatment Project. Additionally, the
purported CRM purchase agreement from 2016 was terminated, settling
a key issue for the Company. The settlement agreement confirmed the
termination of the CRM purchase agreement, dismissed the litigation
commenced in 2016 and released each party from any further
obligations. Importantly, the Company recovered funds from escrow,
netting $4,580,000.
The Retreatment Project provides new possibilities and options
for Eastplats. Management's 2017 focus on the completion of the
Chrome feasibility study by Sound Mining, and the ongoing site
preparation work enabled the Company to enter into the UG Agreement
and it is now working to advance the Retreatment Project.
Management is optimistic that it will meet the agreed construction
timetable for the chrome operations with the expectation of
revenue-producing operations in the fall of 2018. The Company will
be focused on advancing construction of the Retreatment Project and
ensuring the anticipated schedule is maintained.
The delivery of the updated Platinum Group Metals
("PGM's") feasibility study on the same tailings resource at
the CRM in early Q2 2018 could also provide additional economic
opportunities for the Company in the near term. Further, the
Company awaits the results of the completion of the Mareesburg
Feasibility Study, which should be available at the end of Q2
2018.
New Director
Nigel K. Dentoom joins the board
of directors of the Company effective immediately. Mr. Dentoom has
worked in mining and metals for over 45 years and has experience
with over thirty finance institutions, metal, derivative and
commodity companies in both executive and non-executive positions.
Mr. Dentoom was first elected to the Governing Board of the London
Metals Exchange in 1996 and is currently on the LME user group.
Diana Hu, CEO of Eastern Platinum
commented, "The Company is pleased to welcome Nigel and his years
of experience in mining and metals to our board and I look forward
to working with him as the team continues to build Eastplats." Ms.
Hu continued "I am pleased with all the progress that was achieved
in 2017 and determined to capitalize on the active construction of
the Retreatment Project in Q1 2018, two feasibility studies to be
completed in Q2 2018 and the commissioning and operations targeted
for Q3 2018."
The Company has filed the following documents, all of which are
available under the Company's profile on SEDAR at
www.sedar.com:
- Audited consolidated financial statements for the year ended
December 31, 2017;
- Management's discussion and analysis for the year ended
December 31, 2017; and
- Annual Information Form at December 31,
2017.
Grants Stock Options
Mr. Dentoom was granted 100,000 stock options as a Director of
the Company that vest in 90 days. The options were granted for a
term of five years and expire on March
27, 2023. Each option allows the holder to purchase
one common share of Eastplats at an exercise price of CDN$0.37.
Updated Website
The company has updated its website -
www.eastplats.com
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: vesting and expiry of options issued by
the Company ,estimated timing of construction and commissioning of
the Retreatment Project, estimated timing of operations and revenue
generation of the Retreatment Project; the timing, completion, and
results of the updated PGM feasibility study on the tailings
resource at the CRM property, and the timing and completion of the
feasibility study related to the Mareesburg 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, commodity prices, 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