Voluntary Announcement - Offtake Agreement
BAUBA PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1986/004649/06)
Share code: BAU ISIN No: ZAE000145686
(“Bauba” or the “Company”)
VOLUNTARY ANNOUNCEMENT – OFFTAKE AGREEMENT
The Board is pleased to announce that Bauba has concluded a Chromite Ore Commodity Purchase
Contract (“Offtake Agreement”) with Gerald Metals S.A. (“Gerald”) and Pelagic Resources Proprietary
Limited (“Pelagic Resources”) for chrome ore Run of Mine (“ROM”) 40% Cr2O3 produced from
Bauba’s Moeijelijk Mine. This Offtake Agreement is to be underpinned by a USD5 million
prepayment, which represents a part prepayment on 240,000 tonnes of chrome ore ROM to be
The Offtake Agreement includes an appropriate reduction factor on chrome ore ROM tonnage
obligations once chrome ore concentrate material is produced from Moeijelijk Mine’s wash plant.
This prepayment may be used for further growth enhancing projects at Bauba’s Moeijelijk Mine or
towards acquisition and development of new mines that Bauba is currently pursuing.
Gerald is part of The Gerald Group, a leading private global commodity trading company engaged in
the physical merchanting, development, trade and structured finance of commodities with
approximately USD3 Billion in assets and USD10 Billion in revenue. Gerald has been purchasing on a
spot basis from Bauba via its relationship with Pelagic Resources for a year and this transaction
complements Gerald’s raw material books and its overall marketing strategy.
Pelagic Resources, who has successfully participated over the last 18 months in the marketing of
Bauba’s chrome ore production, specialises in international finance, marketing, and supply chain
solutions for the global trade of mineral ores and alloys.
“This financing and offtake agreement will further enhance Bauba’s future profitability. Geralds’
commitment to pre-finance and trade Bauba’s chrome ore production is a significant vote of
confidence in the future prospects of our Company.” says Nick van der Hoven, CEO of Bauba.
8 August 2017
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