Barplats Mines, a subsidiary of Eastern Platinum, has entered into a project framework agreement with Advanced Beneficiation Technologies of South Africa.
Advanced Beneficiation Technologies is an organization fully compliant as a Black Economic Empowerment Entrepreneur and a member of the Omang Group of companies.
Advanced Beneficiation Technologies will complete an independent feasibility study for the development and construction of a new modular plant with a capacity to process the platinum group metals of the tailings redeposited at a designated area of the Zandfontein Tailings Dam situated at the Crocodile River Mine in South Africa at a rate of between 20,000 and 50,000 tons per month.
There are several milestones required by Eastplats and the Project Agreement to complete and establish this Project, including the completion, assessment and acceptance of the Feasibility Study expected during November 2020, to be followed by the conclusion of various agreements, including a joint venture agreement between Barplats and Advanced Beneficiation Technologies and procuring appropriate funding.
Barplats will supply the material and related infrastructure for PGMs processing from the Zandfontein Tailings Dam, establish an appropriate off-take agreement, and support the Project through both executive management and administration.
Advanced Beneficiation Technologies, as the intended operator, is responsible to complete the Feasibility Study, secure appropriate funding, oversee the construction and commissioning and operate the Project as governed by the Project Agreement.
Diana Hu, the CEO of Eastplats, states:
“We are pleased to sign this Project Agreement with Advanced Beneficiation Technologies and begin this Feasibility Study and the Project. This venture is a new potential revenue source for the Company without any additional capital funding obligations and an opportunity to recover PGMs from the tailings redeposited onto the Zandfontein Tailings Dam.”
The effects of COVID-19 are changing and the Company cannot reasonably estimate at this time the impact of COVID-19 on this Project, current operations, new lockdowns or policies imposed by the Government of South Africa all of which could potentially have material adverse effects on the Company’s business, liquidity and cashflows.