APP.L Regulatory News (APP)

23 Oct 2006 07:00

African Platinum Plc23 October 2006 African Platinum plcTicker: APPIndex: AIMSector: Platinum and precious metals AFPLATS CONCLUDES BEE NEGOTIATIONS ON LEEUWKOP London, 23 October 2006 - London-listed platinum exploration and developmentcompany African Platinum plc (Afplats) today announced that it had concludednegotiations with the Bakwena Ba Mogopa traditional community for a blackeconomic empowerment (BEE) partnership, as required by the South African miningcharter, on its flagship Leeuwkop project. The area where Leeuwkop is locatedis the traditional home of the Bakwena community. A memorandum of understanding (MOU) defining the terms of the BEE equityparticipation has been ratified by a full Bakwena community meeting. Its termswill be incorporated in the definitive shareholders' agreement currently beingdrafted. Full details of this agreement will be announced once it has beenfinalised. The original prospecting agreement between Afplats and the Bakwena gave theBakwena the right to a participation of up to 50% in Afplats (Proprietary)Limited (APL), the Afplats subsidiary which holds the New Order ProspectingRight for Leeuwkop. In terms of the MOU which has now been concluded, Afplatswill hold 74% of APL and the Bakwena 26%. In return for its increased holding,Afplats will provide the first ZAR1 billion of development capital for theLeeuwkop project and will also pay the Bakwena an amount of R7.5 million peryear for eight years from the granting of the mining right. Chief executive Roy Pitchford said the conclusion of the MOU with the Bakwenacleared the way for the granting of a New Order Mining Right to APL and as suchmarked another major advance in the progress towards the development ofLeeuwkop. The Bakwena's 26% participation in APL complies with the MiningCharter's 2014 BEE requirements. In the company's 2006 annual report, published last month, Afplats saidconstruction of Phase 1 of the Leeuwkop project was expected to start in thefirst quarter of 2007 after the granting of the New Order Mining Right. Phase 1will be a 300 000 ounce 4E (platinum group elements, plus gold) per year miningand concentrating operation with a life of more than 20 years. However, Afplatsand its black economic empowerment partners have a resource base of 92 millionounces 4E in the Greater Leeuwkop Project area - exceeded only by the threemajor platinum group metal producers - and its eventual aim is to treble thesize of the Phase 1 operation through two further shaft systems. AFRICAN PLATINUM PLC ENQUIRIES:Chief Executive - Roy Pitchford - +27 (0)82 419 2581 or +44 (0)77 9390 9985Investor & Media Relations - Kathy du Plessis - +27 (0)11 728 4701, +27 (0)83266 5847 (Mobile) or info@afplats.comWebsite: 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