BRR Braemore Res

RNS Number:9203J
Braemore Resources PLC
14 December 2007


14 December 2007
                              



                             BRAEMORE RESOURCES plc

                                  ("Braemore")


              Braemore signs Heads of Agreement with Pan Palladium


Braemore (AIM: BRR) announces that it has signed a legally binding Heads of
Agreement (the "Agreement") with Pan Palladium Ltd (ASX: PPD) in which they will
seek to enter into an agreement to form a joint venture for the evaluation and,
if feasible, the development and mining of the Grass Valley Platreef Project.

This project is a platinum group metal/ nickel deposit situated in the Platreef
area in South Africa, for which PPD holds prospecting rights and has already
conducted preliminary studies. It is a joint venture with Impala Platinum, and
has an estimated resource of 3.6 million ounces of Platinum Group Elements
(PGE's), 103,000 tonnes of Nickel and 28,000 tonnes of Copper (as reported by
RSG - April 2004). It is located 15km south of the town of Mokopane and
approximately 30km south of Ivanhoe Nickel and Platinum's PGM-Ni-Cu project on
the Platreef.

The terms of the Agreement, signed on 12 December 2007, include the following:

        Braemore to acquire a 50% interest in PPD's 75% interest in Grass Valley
on completion of prefeasibility study within 18 months and a definitive
feasibility study within 30 months on the Grass Valley Project. The studies are
to be financed by Braemore, and the current estimated total cost of the studies
is ZAR55m (GBP3.97m).

        Braemore to subscribe for 5 million new ordinary shares in PPD at A$0.20
each within 10 business days of PPD shareholder approval of the terms of this
Agreement.

        Braemore to be granted options to subscribe for new ordinary shares in
PPD at increasing exercise prices as follows:

     -   20 million options exercisable within 2 years at A$ 0.30 each

     -   20 million options exercisable within 3 years at A$ 0.40 each

     -   20 million options exercisable within 4 years at A$ 0.60 each

     -   20 million options exercisable within 5 years at A$ 0.80 each

        On delivery of a successful feasibility study for Grass Valley, Braemore
would be issued with a further 10 million ordinary shares in PPD, with a similar
amount for PPD's Aurora project, should that project also proceed. Assuming that
all of the share issues described above take place and that Braemore exercises
all of its options, Braemore would own 43 per cent of the issued share capital
of PPD on a fully diluted basis, excluding the impact of any shares issued to
other parties for fundraisings or other activities.

        Braemore to appoint a non-executive director to the Board of PPD.

        PPD to appoint as its Managing Director a suitably qualified person
nominated by Braemore on terms to be agreed between PPD and such nominee.

An Extraordinary General Meeting of PPD's shareholders will be called in early
2008, in order to obtain approval for these arrangements.

Hamish Bohannan, Managing Director of Braemore, commented:

"This agreement is a direct extension of Braemore's ongoing strategy to use its
exclusive license for the ConRoast process as a fully-fledged platinum producer,
from mine to metal. We look forward to working with Pan Palladium on the joint
venture to increase the long-term benefit to the shareholders of both
companies."

For further information, please contact:

Braemore Resources                     Qinisele Resources (Pty) Limited
Mr. Hamish Bohannan                    Mr. Dennis Tucker
Managing Director                      Director
Braemore Resources Plc                 Tel: +27 82 492 4957
Tel (Office): +61 8 9218 8833
Tel (Mobile):+61 419 234 770

Nabarro Wells & Co. Limited            Parkgreen Communications
Mr Hugh Oram                           Justine Howarth
Director                               Erica Nelson
Tel: +44 20 7710 7400                  Tel: +44 20 7851 7480


Pan Palladium Limited

Pan Palladium is focused on platinum group and related metals exploration in
South Africa, aiming ultimately to become a producer of these elements. Its two
principal projects are in the Bushveld region, north of Johannesburg, which is
the source of the majority of the world's platinum group element resources.

Pan Palladium's joint venture partners in Grass Valley and Aurora include Impala
Platinum, one of the world's largest platinum producers.

Pan Palladium is listed on the Australian Stock Exchange, ASX Code: PPD.


Braemore Resources and Independence Platinum Limited

Braemore Resources Plc is listed on the London AIM market, AIM Code: BRR

Independence Platinum, Braemore's 100%-owned subsidiary, was established for the
purposes of financing and investing in the evaluation, development and
operations of Independence Base Metals Refiners (Pty) Ltd, Independence Platinum
Resources (Pty) Ltd and Independence Precious Metals Refiners (Pty) Ltd in South
Africa.

Collectively these companies are implementing plans to evaluate, establish and
operate independent facilities for the smelting and refining of sulphide
concentrates containing platinum group elements from emerging platinum producers
in South Africa, utilizing Mintek's ConRoast process for which it has an
exclusive global license.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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