APP.L Regulatory News (APP)

18 Oct 2005 10:03

African Platinum Plc18 October 2005 African Platinum plcTicker: APPIndex: AIMSector: Exploration AFPLATS APPOINTS RMB TO ADVISE ON LEEUWKOP FUNDING London, 18 October 2005 - AIM-listed platinum exploration and developmentcompany African Platinum (Afplats) announced today that it had appointed RandMerchant Bank (RMB) to advise it on the structuring and funding of the LeeuwkopPGM project. RMB ranks as one of the top South African corporate advisoryfirms, and the team which has established its investment banking track record inthe resources sector will include experienced specialists dedicated to theimplementation of Black Economic Empowerment (BEE) transactions. Chief executive Roy Pitchford said RMB would determine the optimal capitalstructure for raising an estimated ZAR1.9 billion which Afplats needs to bringthe mine on the Western Limb of South Africa's Bushveld Complex into production.RMB will also advise Afplats and its BEE partners on an efficient and fundablestructure that satisfies the requirements of the Mining Charter. "The appointment of RMB is a significant milestone in the development of theproject. As the technical part of the feasibility studies is being concluded,the role of the advisor in helping Afplats progress to securing funding will becrucial to the success of the project," Pitchford said. The next phase of the project development plan includes a definitive feasibilitystudy which is expected to be completed in the first half of 2006. RMB willassist Afplats in converting this to a bankable feasibility study. In addition,an independent engineer will be appointed to complete a Competent Persons Reporton the Leeuwkop project as a prerequisite for the fundraising exercise. Afplats has already spent some ZAR112 million on proving the Leeuwkop resource,which currently stands at 50 million ounces of 4E (the three platinum groupmetals plus gold) but which the company believes has the potential forsignificant expansion. The pre-feasibility study envisages a 300 000 ounce peryear mining and concentrating operation with a life of mine in excess of 20years. AFRICAN PLATINUM PLC ENQUIRIES:Chief Executive - Roy Pitchford+27 (0)82 419 2581 or +44 (0)77 9390 9985 Investor & Media Relations - Kathy du Plessis+27 (0)11 728 4701 or +27 (0)83 266 5847 (Mobile) info@afplats.com Website: www.afplats.com DISCLAIMER: Investing in all equities, including natural resources-relatedequities, carries risks which should be taken into consideration when making aninvestment. This announcement contains forward-looking statements regardingAfrican Platinum plc, including the development of its mining developmentprojects. Actual results relating to any and all of these subjects may differmaterially from those presented. This information is provided by RNS The company news service from the London Stock Exchange