To view the PDF file, sign up for a MySharenet subscription.

BAUBA PLATINUM LIMITED - Voluntary Announcement - Offtake Agreement

Release Date: 08/08/2018 15:07
Code(s): BAU     PDF:  
Wrap Text
Voluntary Announcement - Offtake Agreement

(Incorporated in the Republic of South Africa)
(Registration number 1986/004649/06)
Share code: BAU ISIN No: ZAE000145686
(“Bauba” or the “Company”)


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

Merchantec Capital

Date: 08/08/2018 03:07:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Email this JSE Sens Item to a Friend.

Share This Story