/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE
SERVICES/
Trading Symbol: ELR (TSX); EPS (JSE)
VANCOUVER, Oct. 29, 2019 /CNW/ - Eastern Platinum Limited
("Eastplats" or the "Company") and its subsidiary
Barplats Mines (Pty) Limited ("Barplats") are pleased to
announce Barplats has entered into a sales agreement (the
"Agreement") with Eland Platinum (Pty) Limited
("Eland"). The Agreement provides for sale of the mining
rights, immovable property, infrastructure and equipment of the
Maroelabult resource property (the "Assets") located near
Brits in South Africa. The
consideration to be received is R20 million (US$1.4 million), the assumption of the
rehabilitation obligation and immediate assumption of the care and
maintenance costs (the "Purchase Price") subject to
representations and warranties by both parties. The Purchase Price
is payable and enforceable on closing the transaction following the
transfer of legal title and the completion of the various legal and
regulatory obligations required in South
Africa which may take up to or over 1 year.
Barplats obtains immediately benefits by reducing its ongoing
costs. Eland, without cost to Barplats, will be appointed to render
the required care and maintenance services for the Assets until
closing the transaction.
Diana Hu, CEO of the Company
commented "Eastplats is pleased to close this transaction with
Eland and to monetize Maroelabult. The Company obtains an immediate
cash savings while Eland can exploit the resources for which it is
better located and positioned."
Cautionary Statement Regarding Forward-Looking
Information
This press release contains "forward-looking statements" or
"forward-looking information" (collectively referred to herein as
"forward-looking statements") within the meaning of
applicable securities legislation. Such forward-looking
statements include, without limitation, forecasts, estimates,
expectations and objectives for future operations that are subject
to a number of assumptions, risks and uncertainties, many of which
are beyond the control of the Company. Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "will", "plan",
"intends", "may", "will", "could", "expects", "anticipates" and
similar expressions. Further disclosure of the risks and
uncertainties facing the Company and other forward-looking
statements are discussed in the Company's Annual Information Form
and Management's Discussion and Analysis which are available under
the Company's profile on www.sedar.com.
In particular, this press release contains forward-looking
statements pertaining to: selling Assets of Maroelabult and the
timing of receiving the sales proceeds. These forward-looking
statements are based on assumptions made by and information
currently available to the Company. Although management
considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect. By
their very nature, forward-looking statements involve inherent
risks and uncertainties and readers are cautioned not to place
undue reliance on these statements as a number of factors could
cause actual results to differ materially from the beliefs, plans,
objectives, expectations, estimates and intentions expressed in
such forward-looking statements. These factors include, but
are not limited to, commodity prices, lower than expected grades
and quantities of resources, need for additional funding,
availability of such additional funding and that funding will be on
acceptable terms, economic conditions, currency fluctuations,
competition and regulations, legal proceedings and risks related to
operations in foreign countries.
The forward-looking statements in this press release are made as
of the date they are given and, except as required by applicable
securities laws, the Company disclaims any intention or obligation
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information
contained herein.
SOURCE Eastern Platinum Limited