Lebowa Acquisition Becomes Effective
July 02 2009 - 9:00AM
PR Newswire (US)
VANCOUVER, July 2 /PRNewswire-FirstCall/ -- Anglo Platinum Limited
("Anglo Platinum") (JSE:AMS) and Anooraq Resources Corporation
("Anooraq") (TSXV: ARQ; NYSE Amex: ANO; JSE: ARQ) announces that
all of the conditions precedent to the acquisition by Anooraq of an
effective 51% interest in the Lebowa Platinum Mine from Anglo
Platinum have been fulfilled. 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 July 1, 2009. Philip Kotze, the
President and Chief Executive Officer of Anooraq, commented "We are
delighted that this transaction has been concluded. We view it as
the first step in the realisation of our primary strategic
objective to become a platinum group metals (PGM) producing
company. As Anooraq now controls the third largest PGM resource
base in South Africa, with a combination of high quality
exploration, development and production mineral properties, the
company has a very solid base from which to grow its production. I
would like to thank all of the parties who have worked so hard to
ensure that this transaction was completed successfully." Neville
Nicolau, Chief Executive Officer of Anglo Platinum, commented: "We
are pleased to report the successful conclusion of the transaction
with Anooraq. The transaction facilitates Anooraq's strategy of
becoming a major HDSA managed and controlled PGM producer and
illustrates Anglo Platinum's commitment to broad-based black
economic empowerment as a strategic transformation initiative."
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 South
Africa, had annual refined production of 147,600 4E (Pt, Pd, Rh and
Au) oz (refined platinum 72,600 oz) in 2008 from its current 91,500
tonnes per month operation exploiting the Merensky and UG2 reefs.
At December 31, 2008, Lebowa had proven and probable reserves in
Merensky and UG2 Reefs of 68.38 million tonnes, containing 10.86
million 4E oz at an average 4E grade of 4.94 g/t, as well as
measured and indicated resources of 233.7 million tonnes containing
some 47.77 million 4E oz at an average 4E grade of 6.36 g/t plus
significant inferred resources. 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 Canada. Copies of such reports may be obtained from
SEDAR (http://www.sedar.com/) or by contacting by calling investor
services in South Africa at +27 11 883 0831 or in North America at
1 800 667 2114. Closing of Private Placement In connection with the
transaction, Anooraq announces the closing of the private placement
previously announced on May 14, 2009 whereby the Bokoni Platinum
Mine ESOP Trust and the Anooraq Community Trust subscribed for an
aggregate of 14,296,567 common shares of Anooraq (the "Private
Placement Shares"). The Private Placement Shares are subject to
statutory holds periods which will expire on November 1, 2009. 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 http://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
http://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. DATASOURCE: Anooraq
Resources Corporation CONTACT: Anglo Platinum Limited, Anna
Poulter, Investor Relations, South Africa, +27 11 373 6683; Anooraq
Resources Corporation, Philip Kotze or Joel Kesler, South Africa,
+27 11 883 0831, Investor Services, North America, 1-800-667-2114
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