Platinum junior Barplats Investments announced last week that it
had concluded a R172,8-million deal with black economic-empowered
(BEE) consortium Gubevu, led by former Cabinet Minister Dr Penuell
Maduna, which had acquired a 26% stake in the platinum-miner.
The cash would be invested into Barplats’ main assets, at
Crocodile River and Kennedy’s Vale, in the North West, which
were acquired last year by majority shareholder Platinum Consortium
from Implats for R390-million.
Barplats MD David Salter said that the money would be used to bring
the Maroelabult section at Crocodile River to fulrock crushing plant zenithl production and
begin mining in the Zandfontein section, as well as to speed up the
exploration and evaluation at Kennedy’s Vale.
The Gubevu consortium comprised Maduna’s Gubevu Resources,
broad-based Emseni Resources, led by former Health Department DG Dr
Olive Shisana and Dr Keith Shongwe, and a women-ledcrushed and screens used sale
minerals-investment company, Nasidima Investment Holdings.
Barplats had also raised R120-million in debt finance from Nedbank
Capital, which would be used to retire a previous
dollar-denominated loan.
Operations at Crocodile River were progressing well, with the
resumption of operations at Maroeused gold mining equipment south africa pricelabult, the smallest section, on
schedule.
The refurbishment of the metallurgical plant and infrastructure had
also been completed, and the first concentrate was shipped in
March.
Salter said that the mine was expected to produce some 19 000oz of
platinum this year, and reach namiron ore mining effect in philippineseplate capacity of 150 000 t/m
run-of mine in three years.
At Kennedy’s Vale, the resourcebase had been established as
371-million tons, at 4,96 g/t and 28,3-million oz of
platinum.
Salter said that the operation had, thus far, not been a primary
focus, but would begin to receive increased attenvertical roller mill rpmtion.
Returning to the BEE deal, he emphasised the simplicity of the
transaction, which would involve the acquisition by Gubevu of some
80-million newly-issued ordinary shares at a R2,21 a share.
Although Barplats shares were around R7 yesterday, it had been
agreed from the outset of negotiations that the transaction would
be based on the share price as it was in July last year.
Barplats also indicated, in a press release, that it was looking at
further capitalisation of the company, but Salter said that all
options were still being investigated.
He said that the transaction(s) would probably involve both equity
and debt finance and would involve some R300-million.
Barplats was confident that the once-belea-guered operations at
both Crocodile River and Kennedy’s Vale would prove
increasingly profit- able.
Chairman Loucas Pouroulis attributed the expec-ted turnaround to,
“a return to good old-fashioned mining methods”.
Further, where previous owners Implats and Rand Mines had focused
on the openpit at Maroelabult, Barplats would exploit the
underground-mining potential.
Pouroulis added that exploration and studies had shown that
reported geological faults and other “perceived
problems” at Crocodile River were not as severe had been
reported.
The company expected to reach a position of positive cashflow by
September.