Wrap Text
Market update and renewal of cautionary announcement
Atlatsa Resources Corporation
(previously Anooraq Resources Corporation)
(Incorporated in British Columbia, Canada)
(Registration number 10022-2033)
TSXV/JSE share code: ATL
NYSE AMEX share code: ATL
ISIN: CA0494771029
(”Atlatsa” or the “Company”)
MARKET UPDATE AND RENEWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders of Atlatsa Resources Corporation (“Atlatsa” or the “Company”)
(TSXV: ATL; NYSE MKT: ATL; JSE: ATL) are referred to the announcements
released on 2 February 2012, 3 May 2012, 14 June 2012, 27 July 2012, 7
September 2012, 22 October 2012 and 3 December 2012 respectively, relating
to the agreement of key terms in respect of a transaction to restructure,
recapitalize and refinance Atlatsa and the Bokoni group of companies
(“Bokoni group”) (the “Restructure Plan”), as well as the media releases
on 27 September 2012 and 2 October 2012 relating to the conclusion of the
interim implementation agreement relating to the consolidation of the
Bokoni group debt and consequent reduction in its cost of borrowing (“the
phase one agreement”).
Re-commencement of operations after unprotected strike
On 1 October, 2012 an unprotected strike commenced at Bokoni Platinum
Mines (“Bokoni Mine”) as a consequence of the 2012 strike contagion within
the mining sector in South Africa. No operations, other than essential
services, took place at Bokoni Mine between 1 October 2012 to 1 December
2012 when the unprotected strike ended. Operations at Bokoni Mine re-
commenced in mid December 2012, subsequent to the necessary safety
inspections and workforce inductions having been concluded.
The unprotected strike did not result in any amendments to the existing
wage agreement between Bokoni Mine and its recognised Unions, due to
expire in July, 2013. The current Bokoni Mine workforce is approximately
5,000 people, comprising 3,500 own employees and 1,500 contractors.
As a consequence of the unprotected strike, Bokoni Mine lost approximately
35,500 PGM Oz (4E) of production during Q4 2012.
Subsequent to the annual Christmas break, the start up of mine operations
in January, 2013 has been implemented according to plan, with both mine
and processing operations having normalised.
Operational plan and financing strategy
The Bokoni Mine’s future operational plan, capital budgeting and financing
strategy has been reviewed, having regard to the negative impact of the
unprotected strike and the Company’s intended strategy going forward. The
results of this review and its impact have been taken into consideration
by the Company and Anglo American Platinum Ltd pursuant to the parties
completing phase two of the Restructure Plan, anticipated to be finalized
during the first half of 2013.
Once the necessary internal and regulatory approvals relating to phase two
of the Restructure Plan have been obtained, the Company will publish the
financial effects of the Restructure Plan and post its circular to
shareholders seeking necessary approvals for its implementation.
A further detailed announcement will be released to the media in North
America, on the Securities Exchange News Service in South Africa, filed on
SEDAR and EDGAR, and published in the South African press, as soon as the
financial effects have been finalized, and the definitive transaction
agreements relating to phase two of the Restructure Plan have been
executed by the Company.
Shareholders are advised to continue exercising caution when dealing in
the Company’s securities until a full announcement is made.
Johannesburg
18 January 2013
JSE Sponsor
Macquarie First South Capital (Pty) Limited
Issued on behalf of Atlatsa Resources Corporation
On behalf of Atlatsa
Joel Kesler
Executive: Corporate Development
Office: +27 11 779 6800
Mobile: +27 82 454 5556
Russell and Associates
Charmane Russell
Office: +27 11 880 3924
Mobile: +27 82 372 5816
Macquarie First South Capital
Annerie Britz/ Yvette Labuschagne
Office: +27 11 583 2000
Cautionary and forward-looking information
This document contains “forward-looking statements” that were based on
Atlatsa’s expectations, estimates and projections as of the dates as of
which those statements were made, including statements relating to the
Bokoni Group restructure and refinancing and anticipated financial or
operational performance. Generally, these forward-looking statements can
be identified by the use of forward-looking terminology such as “may”,
“will”, “outlook”, “anticipate”, “project”, “target”, “believe”,
“estimate”, “expect”, “intend”, “should” and similar expressions.
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the Company’s actual
results, level of activity, performance or achievements to be materially
different from those expressed or implied by such forward-looking
statements. These include but are not limited to:
- uncertainties related to the completion of the Bokoni Group
restructure and refinancing;
- uncertainties and costs related to the Company’s exploration and
development activities, such as those associated with determining whether
mineral resources or reserves exist on a property;
- uncertainties related to feasibility studies that provide estimates
of expected or anticipated costs, expenditures and economic returns from a
mining project;
- uncertainties related to expected production rates, timing of
production and the cash and total costs of production and milling;
- uncertainties related to the ability to obtain necessary licenses,
permits, electricity, surface rights and title for development projects;
- operating and technical difficulties in connection with mining
development activities;
- uncertainties related to the accuracy of our mineral reserve and
mineral resource estimates and our estimates of future production and
future cash and total costs of production, and the geotechnical or
hydrogeological nature of ore deposits, and diminishing quantities or
grades of mineral reserves;
- uncertainties related to unexpected judicial or regulatory
proceedings;
- changes in, and the effects of, the laws, regulations and government
policies affecting our mining operations, particularly laws, regulations
and policies relating to:
- mine expansions, environmental protection and associated compliance
costs arising from exploration, mine development, mine operations and mine
closures;
- expected effective future tax rates in jurisdictions in which our
operations are located;
- the protection of the health and safety of mine workers; and
- mineral rights ownership in countries where our mineral deposits are
located, including the effect of the Mineral and Petroleum Resources
Development Act (South Africa);
- changes in general economic conditions, the financial markets and in
the demand and market price for gold, copper and other minerals and
commodities, such as diesel fuel, coal, petroleum coke, steel, concrete,
electricity and other forms of energy, mining equipment, and fluctuations
in exchange rates, particularly with respect to the value of the U.S.
dollar, Canadian dollar and South African rand;
- unusual or unexpected formation, cave-ins, flooding, pressures, and
precious metals losses (and the risk of inadequate insurance or inability
to obtain insurance to cover these risks);
- changes in accounting policies and methods we use to report our
financial condition, including uncertainties associated with critical
accounting assumptions and estimates; environmental issues and liabilities
associated with mining including processing and stock piling ore;
- geopolitical uncertainty and political and economic instability in
countries which we operate; and
- labour strikes, work stoppages, or other interruptions to, or
difficulties in, the employment of labour in markets in which we operate
mines, or environmental hazards, industrial accidents or other events or
occurrences, including third party interference that interrupt the
production of minerals in our mines.
For further information on Atlatsa, investors should review the Company’s
Annual Report disclosed in the Form 20-F for the year ended December 31,
2011 filed on SEDAR at www.sedar.com and with the United States Securities
and Exchange Commission www.sec.gov and other disclosure documents that
are available on SEDAR at www.sedar.com.
Date: 18/01/2013 04:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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