"ON TRACK FOR NEAR-TERM PRODUCTION"
/NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES
TORONTO, Aug. 6 /CNW/ - Platmin Limited ("Platmin", TSX/AIM: PPN) is
pleased to announce that Platmin has finalized and signed a joint mandate and
term sheet with The Standard Bank of South Africa Limited ("Standard Bank")
and Standard Chartered Bank ("Standard Chartered") to arrange and underwrite a
debt facility of US$ 200 million to Pilanesberg Platinum Mines (Pty) Limited
("Pilanesberg") for the development of the Pilanesberg platinum mine project
in South Africa.
Ralf Degni, CFO, stated today "Standard Bank and Standard Chartered will
act as the joint Lead Arrangers for this facility. Standard Bank and Standard
Chartered will underwrite the full debt facility of US$ 200 million in equal
amounts. The financial close of this debt facility is scheduled for October
2008 and at that time the bridge loan facility of ZAR 350 million currently in
place, as announced on 14 May 2008, will be repaid to Standard Bank."
Platmin CEO, Ian Watson, said today, "This paves the way toward
completing the construction of the Pilanesberg platinum mine, and we remain on
track for first metal production as a PGM Concentrate in the first quarter of
The construction of the Pilanesberg project commenced in October of 2007
and stockpiling of platinum bearing ore is scheduled to commence in September
2008 with commissioning of the metallurgical plant in early 2009.
Terry Holohan, COO, commented, "During July 2008, as promised, our mining
contractor, MCC Contracts, mined over 1 million tonnes of overburden material
and the plant construction contractor, Dowding Reynard and Associates,
commenced the installation of major equipment at the metallurgical processing
plant. The project remains on time and on budget in terms of capital
expenditure. The only major contract that needs to be concluded is in relation
to the operation of the processing plant. This contract, I expect, will be
signed off in the next few weeks and at that stage we will be able to
accurately restate the operating costs and projected revenue for the project
and further demonstrate the robustness of the project."
Financial close and draw down under the debt facility is subject to
customary conditions of completion, including lender credit committee approval
and acceptance of updated legal and technical due diligence.
Standard Bank is a leading provider of resource finance and has extensive
experience in structuring and financing mining projects in South Africa.
Standard Bank was named Best Project Finance Bank in Africa in 2007, and Bank
of the Year in Africa for 2008 by Euromoney.
Standard Chartered Bank plays a key role in the sustainable economic
development of Africa, with a presence in over 70 markets worldwide, 13 of
those in Africa. Standard Chartered's Mining and Metals teams are based in
Johannesburg, London and Shanghai, providing clients with international
project finance expertise. In 2007, Standard Chartered was awarded Bank of the
Year in Africa by The Banker for the fourth time in seven years.
Platmin is an explorer and emerging PGM producer whose four key projects
host mineral resources and reserves: Pilanesberg, Mphahlele, Grootboom and
Loskop. The Pilanesberg Project is under construction with production of PGM
concentrate expected in 2009. All of Platmin's projects are located in the
Bushveld Complex of South Africa, which is estimated to contain approximately
90% of global platinum mineral resources.
In this Market Release "PGM Concentrate" means: an intermediary product
material, which contains the economically recoverable metals, that will be
forwarded to a custom smelter for recovery of the Platinum Group Metals (these
being Platinum ("Pt"), Palladium ("Pd"), Rhodium ("Rh"), Ruthenium ("Ru"),
Iridium ("Ir") and Osmium ("Os")), Gold ("Au"), Silver ("Ag") as well as the
base metals Nickel ("Ni"), Copper ("Cu") and Cobalt ("Co").
Technical and scientific information contained in this Market Release is
based on a National Instrument 43-101 (Standards of disclosure for Mineral
projects) ("NI" or "National Instrument 43-101") and Canadian Institute of
Mining, Metallurgy and Petroleum (commonly known as the "CIM" standards)
compliant Independent Technical Report dated August 7, 2007 which has been
filed on SEDAR and is available to be downloaded from www.sedar.com.
FORWARD-LOOKING INFORMATION, FUTURE ORIENTED FINANCIAL INFORMATION AND
Certain statements contained in this market release constitute
forward-looking information, future oriented financial information, and
financial outlooks (collectively "forward-looking information") within the
meaning of Canadian securities laws. Forward-looking information may relate to
the matters discussed in this market release and other matters identified in
Platmin's public filings, Platmin's future outlook and anticipated events or
results and, in some cases, can be identified by terminology such as "may",
"will", "should", "expect", "plan", "anticipate", "believe", "intend",
"estimate", "predict", "potential", "continue" or other similar expressions
concerning matters that are not historical facts. Forward-looking information
in this market release includes the closing of a US$ 200 million facility with
the Standard Bank and Standard Chartered Bank and completion of a contract for
the management of the processing facility to treat the run of mine ore. Actual
results may vary from such forward-looking information for a variety of
reasons, including those set forth below.
Forward-looking statements in this Market Release are based on a number
of material factors and assumptions, including, satisfaction of the conditions
to completion of the debt facility, adequate power to the processing plant,
that contracted parties provide goods and/or services on the agreed
timeframes, that equipment necessary for construction and development and
mining is available as scheduled and does not incur unforeseen break downs,
that no labour shortages or delays are incurred, that plant and equipment
functions as specified, that no unusual geological or technical problems
occur, and that other on-going contractual negotiations will be completely
successful and progressed and/or completed in a timely manner.
There can be no assurance that Platmin's actual results will match the
forward-looking information as a result of a number of risks for Platmin's
projects with power requirements or otherwise normal hazards (geological,
technical, and production) associated with mining operations, adverse currency
fluctuations, and those risks publicly disclosed by Platmin in its filings
available at www.sedar.com. While Platmin considers these assumptions to be
reasonably based on information currently available to it, they may ultimately
prove to be incorrect.
For further information:
For further information: Ian Watson, Chief Executive Officer, +27 12 661
4280; Ralf Degni, Chief Financial Officer, +27 12 661 4280; Terry Holohan,
Chief Operating Officer, +27 12 661 4280; Fiona Owen, Grant Thornton UK LLP
(Nominated Adviser), +44 207 383 5100; Marion Brower, Russell & Associates,
+27 11 880 3924