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AQP - Aquarius Platinum Limited - Acquisition of mineral rights
Aquarius Platinum Limited
(Incorporated in Bermuda)
Registration Number: EC26290
Share Code JSE: AQP
ISIN Code: BMG0440M1284
ACQUISITION OF MINERAL RIGHTS
Aquarius Platinum Limited ("Aquarius" or the "Company") is pleased to
announce the acquisition of platinum group metal ("PGM") mineral rights by
way of the purchase of Afarak Platinum (Proprietary) Limited ("Afarak"), a
private company incorporated in South Africa (the "Transaction"), following
the fulfilment of all conditions including the granting of Competition
Commission approval last week. Following the Transaction, Aquarius will hold
both directly and indirectly 74% of the outstanding share capital of Afarak,
with the remaining 26% held by Watervale (Proprietary) Limited
("Watervale"), an empowerment company controlled by Savannah Resources
(Proprietary) Limited, Aquarius` major shareholder and Black Economic
Empowerment partner of many years. The Company has an indirect 47% interest
in Watervale.
Summary of Transaction
Afarak`s assets comprise interests in the new order prospecting rights to
two properties known as Hoedspruit and Kruidfontein, both underlain by the
Merensky and UG2 PGM bearing reefs. Both properties are located on the
Western Limb of South Africa`s Bushveld Igneous Complex. Afarak has a 100%
interest in Hoedspruit and the right to earn a 50% interest in Kruidfontein
through additional exploration expenditure as detailed below.
The Hoedspruit licence area is located near to the town of Rustenburg in the
North West Province. Hoedspruit contains 7.23 million 4E PGM ounces
comprising 6.22 million ounces of indicated and 1.01 million ounces of
inferred PGM resources before geological loss adjustments.
The Kruidfontein licence area is north of the Pilanesberg. Kruidfontein
contains 45.40 million 4E PGM ounces comprising 4.29 million ounces of
indicated and 41.11 million ounces of inferred PGM resources before
geological loss adjustments.
At Hoedspruit the Merensky reef horizon occurs at depths below surface
ranging from 898m to 1,315m whilst the depth of the UG2 reef varies from
1,042m to 1,408m. At Kruidfontein the Merensky reef was intersected at
depths below surface ranging from 1,135m to 2,395m and the UG2 reef between
1,150m and 2,409m.
The total consideration for the acquisition of Afarak of US$109.7 million
will be settled via a cash payment of US$70.2 million and the issue of
6,804,162 fully paid common shares in Aquarius.
In addition, Aquarius has the right, but no obligation, to spend US$15
million of exploration expenditure at Kruidfontein in order to acquire, via
100% of Afarak, a 50% interest in that property.
Commenting on the Transaction, Stuart Murray, CEO of Aquarius, said:
"The acquisition of these properties, and in particular the Rustenburg area
property, greatly enhances the strategic options for the Company into the
future, and the purchase price is attractive for the quantity and quality of
the ounces acquired. This purchase is another example of the implementation
of our strategy to grow our resource, reserve and future production base by
opportunistic acquisition. Hoedspruit and Kruidfontein will add
significantly to Aquarius` current portfolio of PGM resources."
The information in this announcement that relates to Exploration Results,
Mineral Resources or Ore Reserves is based on information compiled by Andrew
Mitchell, Nico Denner and Paula Preston, who are all Members or Fellows of
The Geological Society of South Africa and are all registered with the South
African Council for Natural Scientific Professions, both of which are
`Recognised Overseas Professional Organisations` (`ROPO`) included in a list
promulgated by the ASX from time to time. Andrew Mitchell is an independent
geological consultant, and Nico Denner and Paula Preston are employed by
GEMECS (Pty) Ltd. Andrew Mitchell, Nico Denner and Paula Preston have
sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which they are
undertaking to qualify as Competent Persons as defined in the 2004 Edition
of the `Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves`. Andrew Mitchell, Nico Denner and Paula Preston
consent to the inclusion in this announcement of the matters based on their
information in the form and context in which it appears.
For further information please contact:
In the United Kingdom
Gavin Mackay
+44 7909 547 042
In Australia: In South Africa:
Willi Boehm Stuart Murray
+61 8 9367 5211 +27 (0) 11 656 1140
13 April 2011
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 13/04/2011 08:57:01 Supplied by www.sharenet.co.za
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