Perth, Australia — MININGREVIEW.COM — 25 May 2009 – Platinum Australia Limited – listed on the Australian Stock Exchange and the AIM – has signed a conditional agreement with Atla Mining Resources (Pty) Limited to acquire up to 70% of the Rooderand platinum project on the western Limb of the Bushveld Complex.
The agreement is subject to completion of due diligence by PLA and the issuing of a prospecting right covering the project to Atla. PLA also owns the Smokey Hills platinum mine in South Africa.
Rooderand is an advanced platinum exploration project, where previous explorer Anglo Platinum Limited had reported a JORC-compliant inferred resource for their 45% attributable interest of 5.3 million tonnes at a grade of 5.39 g/t 4E (platinum plus palladium plus rhodium plus gold) in the UG2 reef, and 1.7 million tonnes at 7.99g/t 4E in the Merensky Reef. That was 1.35 million ounces of 4E for their 45% attributable interest. The full inferred resource for both reefs combined would be equivalent to 3.01 million ounces of 4E.
Commenting on the agreement, PLA managing director John Lewins said: “We are extremely pleased to have signed this agreement with Atla – which is the mandated representative of the Bakgatla-Ba-Kgafela tribe – to jointly evaluate and develop the Rooderand project. The resource is based on the UG2 Reef which is present from surface to a depth of almost 500 m below surface. The characteristics of the project are therefore very consistent with the stated strategy of PLA to focus on open pit and shallow underground projects which can be rapidly evaluated and brought into production,” he added.
The statement explained that in terms of the agreement, PLA would earn an initial 30% interest in the project for payment of R13.5 million in cash, to be made on completion of the due diligence by 20 October 2009. PLA would earn a further 35% interest for sole funding the project until a feasibility study on the project had been completed. It could then earn a further 5% for arranging the financing for the development of the project, and loaning Atla 9% of the funds required for such development.
The parties have agreed that Platinum Australia SA (Pty) Limited – a subsidiary of PLA – will manage the project.