Lebowa Acquisition Becomes Effective
The transaction has accordingly been implemented in accordance with the terms and conditions of the agreements entered into between, among others, Anooraq and Anglo Platinum and became effective from
Overview of the transaction assets (further details provided in Anooraq news releases dated May 14, 2009)
The Lebowa Platinum Mine, located on the North-Eastern Limb of the Bushveld Complex in
Anooraq also acquired an additional 1% of the Ga-Phasha, Boikgantsho and Kwanda Projects. Lebowa, Ga-Phasha, Boikgantsho and Kwanda are now 51% owned by Anooraq and 49% by Anglo Platinum.
The Ga-Phasha Project is also situated on the North-Eastern Limb of the Bushveld Complex, contiguous to Lebowa, and is at a pre-feasibility stage of development. Ga-Phasha has significant PGM mineral resources outlined in the Merensky and UG2 reefs that are open to further expansion, including 138.8 million tonnes of total measured and indicated resources containing 25.6 million 4E oz at an average 4E grade of 5.74 g/t plus significant inferred resources. The Boikgantsho Project, situated on the Northern Limb of the Bushveld Complex, is at the exploration stage. Boikgantsho has indicated resources in the Platreef horizon of 176.6 million tonnes, containing some 7.7 million 3E (Pt, Pd and Au) oz at an average 3E grade of 1.35 g/t plus significant inferred resources. The Kwanda Project is also situated on the Northern Limb of the Bushveld Complex. It is at a very early stage of development and does not yet have mineral reserves or resources.
Share Settled Financing
In connection with the share settled portion of the vendor financing provided by Anglo Platinum in respect of the transaction, Pelawan Investments (Proprietary) Limited (“Pelawan”),(1) through its wholly-owned subsidiary Central Plaza Investments 78 (Proprietary) Limited (“Pelawan SPV”), and Rustenburg Platinum Mines Limited (“RPM”),(2) a wholly-owned subsidiary of Anglo Platinum, have subscribed for a convertible instrument that ultimately, upon such conversion, provides Pelawan SPV and RPM with the ability to acquire, subject to certain conditions, 111,600,000 common shares of Anooraq (the “Pelawan Shares”) and 115,800,000 common shares of Anooraq (the “RPM Shares”), respectively.
The Pelawan Shares, when issued, will represent approximately 25.1% of the outstanding capital of Anooraq (including the RPM Shares on a fully diluted basis). Following the subscription for the convertible instrument which provides Pelawan SPV with the ability to acquire the Pelawan Shares, Pelawan is deemed to beneficially own 229,188,040 common shares of Anooraq which represents approximately 51.5% of the capital of Anooraq (including the RPM Shares on a fully diluted basis).
The RPM Shares, when issued, will represent approximately 26.0% of the outstanding capital of Anooraq (including the Pelawan Shares on a fully diluted basis). Following the subscription for the convertible instrument which provides RPM with the ability to acquire the RPM Shares, RPM is deemed to beneficially own 115,800,000 common shares of Anooraq which represents approximately 26.0% of the capital of Anooraq (including the Pelawan Shares on a fully diluted basis).
An Early Warning Report in respect of the acquisition of the right to acquire each of the Pelawan Shares and the RPM shares will be filed with the relevant Securities Commissions in
Closing of Private Placement
In connection with the transaction, Anooraq announces the closing of the private placement previously announced on
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. The NYSE Amex Exchange has neither approved nor disapproved the contents of this press release.
Cautionary and Forward Looking Information
This release includes certain statements that may be deemed “forward looking statements”. All statements in this release, other than statements of historical facts, that address potential acquisitions, future production, reserve potential, exploration drilling, exploitation activities and events or developments that Anooraq expects are forward looking statements. Anooraq believes that such forward looking statements are based on reasonable assumptions, including assumptions that: the Transaction will complete; Lebowa will continue to achieve production levels similar to previous years; Anooraq will be able to complete its financing strategy on relatively favourable terms; and the Ga-Phasha and Platreef Project exploration results will continue to be positive. Forward looking statements however, are not guarantees of future performance and actual results or developments may differ materially from those in forward looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, changes in and the effect of government policies with respect to mining and natural resource exploration and exploitation and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward looking statements. For further information on Anooraq, investors should review the Company’s annual information form filed on www.sedar.com or its form 20-F with the United States Securities and Exchange Commission and its other home jurisdiction filings that are available at www.sedar.com.
Information Concerning Estimates of Measured, Indicated and Inferred Resources
This news release uses the terms “measured resources”, “indicated resources” and “inferred resources”. Anglo Platinum and Anooraq advise investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, “inferred resources” have a greater amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for a Preliminary Assessment as defined under National Instrument 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
-------------------- (1) Pelawan has an office at First Floor, Northeast Wing, 43 Wierda Road West, Wierda Valley, Sandton, South Africa. (2) RPM has an office at # 55 Marshall Street, Marshalltown, Johannesburg, South Africa.
SOURCE Anooraq Resources Corporation