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EASTERN PLATINUM LIMITED - Eastplats Reaches Agreement With Minority Interest Partners

Release Date: 07/01/2015 08:00
Code(s): EPS     PDF:  
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Eastplats Reaches Agreement With Minority Interest Partners

EASTERN PLATINUM LIMITED
(Incorporated in Canada)
(Canadian Registration number BC0722783)
(South African Registration number 2007/006318/10)
Share Code TSX: ELR ISIN: CA2768555096
Share Code JSE: EPS ISIN: CA2768555096

NEWS RELEASE - EASTPLATS REACHES AGREEMENT WITH MINORITY
INTEREST PARTNERS

January 6, 2015, Vancouver, British Columbia – On November 7,
2014, Eastern Platinum Limited (“Eastplats” or the “Company”)
announced that it had reached an agreement with Hebei Zhongbo
Platinum Co. Limited (“Hebei Zhongbo”) whereby Hebei Zhongbo
would acquire the Company’s entire South African platinum group
metal business (including a majority of the interests held by
the Company’s existing minority partners (“Minority Interests”))
and all loan agreements that Eastplats has with its subsidiary
companies for a total gross consideration of US$225 million
payable in cash on closing (the “Acquisition”).

As part of the Acquisition, the Company is required to buy out
the Minority Interests upon closing. The aggregate amount to be
paid for the buy-out of these Minority Interests is
US$25,737,000, payable upon the closing of the Acquisition
transaction with Hebei Zhongbo.

The estimated net proceeds of the Acquisition transaction to the
Company, net of the Minority Interests buy-out, finder’s fee and
estimated transaction costs are as follows:

Gross proceeds from Hebei Zhongbo                       $225 000 000
Less: Buy-out of Minority Interests                     (25,737,000)
Net proceeds                                             199,263,000
Less: Finder’s fee                                      (19,926,300)
Less: Estimated transaction costs                        (3,814,700)
Net proceeds of the Acquisition                         $175,522,000

    All amounts are stated in U.S. dollars, unless
    otherwise indicated. All amounts in this table
    have been translated to U.S. dollars at the
    exchange rate on December 15, 2014.

Closing of the Acquisition is subject to certain conditions,
including approval by the shareholders of Eastplats and the
necessary regulatory, South African and People’s Republic of
China (“PRC”) approvals.

Eastplats will hold a Special Meeting of its shareholders on
February 5, 2015 to approve the Acquisition. For more details
on the Special Meeting, the Acquisition and Minority Interests
buy-out, refer to the Company’s Information Circular which is
expected to be filed on www.sedar.com on January 8, 2015.

The parties have agreed that certain events, including the
failure of Eastplats and Hebei Zhongbo respectively to secure
TSX or PRC approval within 90 days of the signature date of the
Acquisition definitive agreements, will trigger the payment of a
break fee of US$11.25 million.

The Acquisition transaction is expected to close within 3 to 6
months.

6 January 2015

For further information, please contact:

EASTERN PLATINUM LIMITED
Ian Rozier, President and CEO
+1-604-685-6851 (tel)
+1-604-685-6493 (fax)
info@eastplats.com
www.eastplats.com

JSE SPONSOR
David Tosi
PSG Capital (Pty) Limited
Email: davidt@psgcapital.com
Tel: +27 21 887 9602

No stock exchange, securities commission or other regulatory
authority has approved or disapproved the information contained
herein.

Cautionary Statement Regarding Forward-Looking Information

This press release contains ‘forward-looking information’ within
the meaning of Canadian securities legislation. Forward-looking
information in this press release includes information about the
completion, timing and potential benefits of the proposed
transaction between Eastplats and Hebei Zhongbo. These forward-
looking statements are subject to a variety of risks and
uncertainties which could cause actual events or results to
differ materially from those anticipated, including, the
contemplated transaction not being completed as a result of a
number of factors including, without limitation, the
shareholders of Eastplats not approving the transaction or
required regulatory approvals not being obtained; and other
risks and uncertainties. Readers should not place undue
reliance on the forward-looking information contained in this
news release. Eastplats does not undertake to update any
forward-looking information, except as required by applicable
securities laws.

Date: 07/01/2015 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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