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Hebei Zhongheng Tianda Platinum Co. Limited To Purchase The Crocodile River Mine
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
June 28, 2016
Trading Symbol: ELR (TSX), EPS (JSE)
NEWS RELEASE
HEBEI ZHONGHENG TIANDA PLATINUM CO. LIMITED TO PURCHASE THE CROCODILE RIVER MINE
June 28, 2016, Vancouver, British Columbia – Eastern Platinum Limited (“Eastplats” or
the “Company”) today announced that it has reached a definitive agreement with Hebei
Zhongheng Tianda Platinum Co. Limited (“HZT”), a private company incorporated in the
People’s Republic of China (“PRC”), whereby HZT will acquire the Company’s South
African subsidiary, Barplats Mines Limited, which holds the Crocodile River Mine, and
associated intercorporate investments and loans, for total consideration of US$50 million
payable in cash on closing (the “Acquisition”). The consideration received by Eastplats will
be net of transaction costs, including amounts payable to certain minority interests, which
amounts remain to be determined.
Closing of the Acquisition is subject to certain conditions, including approvals by the
necessary regulatory bodies and governmental departments or ministries of South Africa.
The parties have agreed that certain events, including the failure of both parties to perform
certain obligations under the Acquisition agreement, will trigger the payment of break fees
of up to US$10 million in the case of HZT failing to meet its obligations, and US$5 million
in the case of Eastplats failing to meet its obligations.
The Acquisition will be carried out in a manner compliant with South Africa's mining laws,
and environmental and socio-economic requirements. Upon closing, HZT will assume
operating responsibility for the Crocodile River Mine and ownership of Barplats Mines
Limited. Eastplats will continue to maintain ownership of its Eastern Limb projects, which
include the Mareesburg, Spitzkop and Kennedy’s Vale projects.
“We are pleased that HZT’s plans to inject foreign capital and the creation of much
needed jobs will stimulate socio-economic development in areas surrounding the CRM
mine.” said David Cohen, President and CEO of Eastplats. “We will retain our large and
shallow eastern limb PGM project base. While the PGM sector remains under pressure,
closing the transaction will leave Eastplats extremely well capitalized.”
The Company’s financial advisor, Paradigm Capital Inc., has delivered a positive opinion
to the Company’s board of directors as to the fairness of the transaction from a financial
point of view to Eastplats. The transaction is expected to close within 6 months.
HZT has represented and warranted to Eastplats that it is not connected with Hebei
Zhongbo Platinum Co. Ltd., the company which had a previous arrangement to acquire all
of Eastplats’ South African assets (as disclosed in the Company’s press release dated
November 7, 2014). That transaction was not completed due to ongoing shareholder
disputes within Hebei Zhongbo Platinum Co. Ltd.
For further information, please contact:
EASTERN PLATINUM LIMITED
David Cohen, President and CEO
+1-604-689-9663 (tel)
+1-604-434-1487 (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 HZT. 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: 29/06/2016 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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