BAUBA PLATINUM LIMITED - Investment in Chrome Spiral Circuit Wash Plant and Primary Crushing Circuit

Investment in Chrome Spiral Circuit Wash Plant and Primary Crushing Circuit

Bauba Platinum Limited
Incorporated in the Republic of South Africa
(Registration number 1986/004649/06)
Share code: BAU ISIN: ZAE000145686
(“Bauba” or "the Company")


INVESTMENT IN CHROME SPIRAL CIRCUIT WASH PLANT AND PRIMARY CRUSHING CIRCUIT


1.   INTRODUCTION

     The board of directors of Bauba is pleased to announce that the Company has concluded a
     contract for the design, construction and commission of a chrome spiral circuit wash plant and
     primary crushing circuit (“Plant”) at Bauba’s Moeijelijk Mine, Limpopo Province, South Africa
     (“Moeijelijk”) for a total consideration of R18.4 million (“the Investment”).

2.   NATURE OF THE PLANT

     The Plant, which is expected to be commissioned by July 2018, will upgrade Moeijelijk’s current
     chrome ore run of mine (“ROM”) saleable product into a lumpy and then foundry, chemical and
     metallurgical grade concentrates. The crushing circuit will have a monthly capacity of
     41,000 tonnes (“t”) of chrome ore ROM. Lumpy chrome ore, which also attracts a pricing
     premium to ROM, will be screened during this crushing process. The spiral wash plant will have
     a planned monthly feed capacity of 35,000 t.

3.   RATIONALE FOR THE INVESTMENT

     This product diversification will enhance Bauba’s profit margins and diversify its revenue stream
     into less volatile, premium speciality grade chrome ore products. This Plant allows for increased
     production when Bauba’s underground mine is at stable production of 30,000 t per month. Stable
     planned underground production is still on track to be achieved by the first half of Bauba’s 2019
     financial year.

4.   EFFECTIVE DATE OF THE INVESTMENT

     The effective date of the Investment is 5 February 2018.

5.   PURCHASE CONSIDERATION

     The purchase consideration of R18.4 million will be settled in cash as follows:
     - R8.3 million in February 2018;
     - R2.8 million in March 2018;
     - R2.8 million in April 2018;
     - R1.8 million in May 2018;
     - R0.9 million in June 2018; and
     - R1.8 million in August 2018.

6.   CONDITIONS PRECEDENT

     There are no conditions precedent to the Investment.

7.   FINANCIAL INFORMATION

     As the Investment is for the development of the Plant, there are no historical net assets, or profits
     attributable to the net assets, which are the subject of the Investment.
8.   CLASSIFICATION OF THE INVESTMENT

     The Investment is classified as a Category 2 transaction in terms of the Listings Requirements of
     the JSE Limited.

9.   COMMENT FROM THE CHIEF EXECUTIVE OFFICER

     “Along with the development of our underground mine, the commissioning of this wash plant will
     further enhance Moeijelijk’s profitability and value.” says Nick van der Hoven, Chief Executive
     Officer of Bauba.

Johannesburg
19 February 2018

Sponsor
Merchantec Capital

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