Eastplats increases equity interest in Lion's Head Platinum and ownership in the Mareesburg platinum project
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Dec. 22, 2011) – Eastern Platinum Limited (TSX:ELR)(AIM:ELR)(JSE:EPS) ("Eastplats" or the "Company") is pleased to report that it has increased its interest in the Mareesburg platinum project ("Mareesburg") as a result of purchasing a further 23% interest in Lion's Head Platinum (Proprietary) Limited ("LHP"), the entity that owns a 100% interest in Mareesburg. The consideration to be paid by Eastplats to acquire this additional interest in LHP is US$10 million and 20 million common shares of Eastplats, making the total cost to the Company approximately US$20.5 million.
Eastplats previously held a 25.5% interest in Mareesburg through its 51% shareholding in LHP, and also successfully earned a 50% direct interest in the project by way of the original Mareesburg Joint Venture agreement, for a total direct and indirect interest of 75.5%. With the acquisition of a further 23% of LHP, Eastplats now holds a 37% interest in Mareesburg through its 74% shareholding in LHP, and the 50% interest by way of the joint venture, for a total direct and indirect interest of 87% in Mareesburg.
The transaction is subject to acceptance by the Toronto Stock Exchange.
"With the ongoing development of the low cost Mareesburg/Spitskop facilities, we are very pleased that we have been able to increase our equity position in Mareesburg. Mareesburg is progressing well and is an important step in our growth strategy of reaching target production by the end of 2013 of 225,000 PGM ounces for the group", stated Ian Rozier.
Total shares issued and outstanding: 928,187,807 (including the 20,000,000 to be issued pursuant to the above transaction)
Cautionary Statement on Forward-Looking Information
Certain statements included herein constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements are based on certain assumptions by Eastplats and therefore, readers are cautioned that forward-looking statements are not a guarantee of future performance. There can be no assurance that such statements will prove to be accurate and actual results could differ materially from those expressed or implied in such forward-looking statements due to factors such as general economic and market conditions, changes in government legislation, controls, regulations and political developments.
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.