London -- (MARKET WIRE) -- October 23, 2006 --
African Platinum plc
Ticker: APP
Index: AIM
Sector: Platinum and precious metals
AFPLATS CONCLUDES BEE NEGOTIATIONS ON LEEUWKOP
London, 23 October 2006 - London-listed platinum exploration and development
company African Platinum plc (Afplats) today announced that it had concluded
negotiations with the Bakwena Ba Mogopa traditional community for a black
economic empowerment (BEE) partnership, as required by the South African mining
charter, on its flagship Leeuwkop project. The area where Leeuwkop is located
is the traditional home of the Bakwena community.
A memorandum of understanding (MOU) defining the terms of the BEE equity
participation has been ratified by a full Bakwena community meeting. Its terms
will be incorporated in the definitive shareholders' agreement currently being
drafted. Full details of this agreement will be announced once it has been
finalised.
The original prospecting agreement between Afplats and the Bakwena gave the
Bakwena the right to a participation of up to 50% in Afplats (Proprietary)
Limited (APL), the Afplats subsidiary which holds the New Order Prospecting
Right for Leeuwkop. In terms of the MOU which has now been concluded, Afplats
will hold 74% of APL and the Bakwena 26%. In return for its increased holding,
Afplats will provide the first ZAR1 billion of development capital for the
Leeuwkop project and will also pay the Bakwena an amount of R7.5 million per
year for eight years from the granting of the mining right.
Chief executive Roy Pitchford said the conclusion of the MOU with the Bakwena
cleared the way for the granting of a New Order Mining Right to APL and as such
marked another major advance in the progress towards the development of
Leeuwkop. The Bakwena's 26% participation in APL complies with the Mining
Charter's 2014 BEE requirements.
In the company's 2006 annual report, published last month, Afplats said
construction of Phase 1 of the Leeuwkop project was expected to start in the
first quarter of 2007 after the granting of the New Order Mining Right. Phase 1
will be a 300 000 ounce 4E (platinum group elements, plus gold) per year mining
and concentrating operation with a life of more than 20 years. However, Afplats
and its black economic empowerment partners have a resource base of 92 million
ounces 4E in the Greater Leeuwkop Project area - exceeded only by the three
major platinum group metal producers - and its eventual aim is to treble the
size of the Phase 1 operation through two further shaft systems.
AFRICAN PLATINUM PLC ENQUIRIES:
Chief Executive - Roy Pitchford - +27 (0)82 419 2581 or +44 (0)77 9390 9985
Investor & Media Relations - Kathy du Plessis - +27 (0)11 728 4701, +27 (0)83
266 5847 (Mobile) or info@afplats.com
Website: www.afplats.com
DISCLAIMER: Investing in all equities, including natural resources-related
equities, carries risks which should be taken into consideration when making an
investment. This announcement contains forward-looking statements regarding
African Platinum plc, including the development of its mining development
projects. Actual results relating to any and all of these subjects may differ
materially from those presented.
This information is provided by RNS
The company news service from the London Stock Exchange