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Acquisition of Chrome Asset Mining Permit and Fulfilment of Conditions Precedent to the Acquisition
BAUBA PLATINUM LIMITED
Incorporated in the Republic of South Africa
(Registration number 1986/004649/06)
Share code: BAU ISIN: ZAE000145686
(“Bauba” or “the Company”)
ACQUISITION OF CHROME ASSET MINING PERMIT AND FULFILMENT OF CONDITIONS PRECEDENT TO THE ACQUISITION
Introduction
Further to the acquisition of chrome assets and renewal of cautionary announcement dated 19 March 2014
and the circular to Bauba shareholders dated 22 August 2014, and using the terms defined therein unless
otherwise stated, the Board is pleased to announce that the DMR has issued Bauba’s major subsidiary,
Bauba A Hlabirwa, with a mining permit and accordingly, the last condition precedent to the Acquisition has
been fulfilled.
Mining Permit
The mining permit allows for approximately 240 000 metric tonnes of run of mine chrome ore to be mined at
a planned 20 000 metric tonnes per month at full production.
Furthermore, the receipt of the mining permit affords Bauba A Hlabirwa the opportunity to apply for a mining
license, which application will be submitted to the DMR by no later than the first week of December 2014.
The DMR has indicated that the mining license will be issued before the completion of the current mining
schedule, which will enable Bauba A Hlabirwa to continue producing chrome ore for sales purposes. This
ought to ensure continued open-cast mining operations and commensurate positive cash flows for both
Bauba A Hlabirwa and the Company over the next five years. Management is currently evaluating the
underground resources in terms of its future development, which would have a substantial influence on the
life of mine.
Chrome Resource
A report by an independent geological consultant with extensive experience in the immediate area of the
farm Moeijelijk 412 KS indicates that the total ore body of the chrome resource amounts to 9.3 million metric
tonnes, of which approximately 1.3 million metric tonnes have been identified as suitable for open-cast
mining operations up to a high wall of 50 metres.
As announced on SENS on 27 March 2014, Bauba A Hlabirwa also entered into a chrome ore supply
agreement with ASA and a lease and option agreement with Jibeng Investment Proprietary Limited, the land
owners of the farm Moeijelik 412 KS, on which the chrome deposit occurs. This agreement also provides an
option to acquire the portion of the farm on which the mining operations will be established.
The agreement with ASA has, for the time being, been capped by Bauba A Hlabirwa at a run of mine off-take
total of 480 000 metric tonnes. However, ASA has expressed an interest to materially increase the aforesaid
quantity at some future date, should Bauba A Hlabirwa be agreeable thereto.
Operational Focus
Following the receipt of the mining permit, Zizwe Opencast Mining Proprietary Limited (“Zizwe”) will be
commissioned to commence site establishment and the extraction of the chrome ore. The first run of mine
chrome ore is expected to be collected by ASA towards the third week of January 2015.
The Company is also currently investigating various underground mining options, with a focus on identifying
a suitable turnkey underground mining contractor with whom it can engage on the same principle basis as
has been established with Zizwe. This will allow for minimum capital outlay and early additional net positive
cash flow from the underground operations.
Drilling on the northern cluster of the platinum project will commence in early 2015.
Financial Impact
The main focus of Bauba, which was established in July 2010, is the development of its platinum projects on
the eastern limb of the Bushveld Igneous Complex. To date, these projects were entirely reliant on
shareholder funding. The Acquisition and the signing of the off-take agreement with ASA however, secures a
steady cash flow stream which is intended to satisfy the short- to medium-term financial requirements of the
Company so as to advance its projects for the foreseeable future and potentially generate sufficient cash to
allow for the commencement of interim dividend distributions in the near future.
Chief Executive Officer of Bauba, Syd Caddy, commented: “I am very pleased to announce the fulfilment of
the conditions precedent to the Acquisition and the subsequent issue of the mining permit as this repositions
the Company from pure exploration to a cash generating chrome producer and exploration company. This
positively distinguishes Bauba from many of its peers in that its current exploration program will become
substantially self-funded, thereby avoiding early dilution of shareholder value.”
This announcement includes certain forward-looking statements and forward-looking information. All
statements other than statements of historical fact included in this announcement including, without
limitation, statements regarding future plans and objectives of Bauba, are forward-looking statements (or
forward-looking information) that involve various risks, assumptions and uncertainties. There can be no
assurance that such statements will prove to be accurate and actual values, results and future events could
differ materially from those anticipated in such statements.
Any forward-looking information in this announcement speaks only at the time of issue and there can be no
assurance that such statements will prove to be accurate as actual values, results and future events could
differ materially from those anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Bauba does not undertake to update any forward-looking statements
that are included herein, or revise any changes in events, conditions or circumstances on which any such
statement is based, except in accordance with applicable securities laws and JSE Listings Requirements.
Johannesburg
11 November 2014
Sponsor
Merchantec Capital
Date: 11/11/2014 10:40:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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