14 Jul 2009 07:00
AQUARIUS PLATINUM LIMITED
ASX, LSE & JSE
ASX / LSE / JSE ANNOUNCEMENT
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO THE SAME WOULD CONSTITUTE A VIOLATION OF THE
RELEVANT LAWS OF SUCH JURISDICTION 14 July 2009 Aquarius Platinum Limited Market Update
Ridge Mining Plc ("Ridge") Acquisition Update
Aquarius ("Aquarius" or "the Company") is pleased to announce that, at the general meeting convened by the Court on 6th July, the Ridge Shareholders voted overwhelmingly in favour of the acquisition of Ridge by Aquarius, by means of a scheme of arrangement (the "Scheme") pursuant to Part 26 of the Companies Act 2006, with 99.99 per cent of shares voted being in favour of the transaction.
The Scheme remains conditional upon the subsequent sanction and (as the case may be) confirmation of the Court. The Scheme is expected to become effective on 30 July 2009 following conclusion of the Scheme Court hearing which is scheduled for 27 July 2009.
Aquarius CEO Stuart Murray said: "Aquarius' South African management is ready to commence the integration of the Ridge assets into the Aquarius stable and have earmarked a multi-functional team to manage this process to ensure a smooth transition. Ridge's operating mine, Blue Ridge Mine, which is currently in ramp-up mode should commence contributing to the Aquarius group's production profile immediately. At the completion of the ramp up-phase, the Blue Ridge Mine is expected to produce approximately 125,000 4EPGM ounces per annum, of which fifty per cent of the production will be attributable to Aquarius."
Everest Platinum Mine Update
Following earlier announcements, Aquarius wishes to further update shareholders on progress at the Company's Everest Platinum Mine.
As previously announced, mining operations at Everest were suspended 8 December 2008 following the subsidence event. The affected area has subsequently stabilized with no further subsidence or seismic activity having occurred since 10 February 2009. Geo-technical investigations have attributed the subsidence to extreme rainfall which affected the characteristics of the shear zone which is prevalent in the affected area. The area affected by the subsidence has been surveyed, confirming the subsidence is confined to the upper areas of the original decline and previously mined out areas in the vicinity of the decline, and that existing stoping and development areas are not affected.
A small care and maintenance team has been retained on-mine, and is able to access the underground workings to perform necessary maintenance activities on the infrastructure unaffected by the subsidence whilst a dedicated project team was appointed to undertake the detailed design and project management for the re-opening of the mine.
The project team has evaluated multiple access alternatives and identified the development of two new declines, one north and one south of the original decline, as the most expedient and capital-efficient means to recommence operations whilst ensuring optimal longer term infrastructure placement in terms of the ore body geometry. The plan below illustrates the two new declines in relation to the original decline. Both the declines are within the current Everest mining area, with the declines placed in the previous opencast mining areas. In addition, the area above the original decline will be mined as an open-pit area.
The sequence of events will initially focus on the establishment of the North decline, which will serve as the main decline (including decline conveyors) whilst the south decline will be used for ventilation, men and material access. Capital has been approved for the first phase of the project: namely the north boxcut, storm water management, temporary and permanent services, access road, initial underground development and rock support.
The Department of Minerals and Energy (DME) has amended the section 54 instruction allowing underground access and preparatory work, including sliping operations to take place. Initial underground development includes sliping operations for the establishment of the north declines and will take place in parallel with the footwall development from the boxcut to the underground workings. The capital cost of this phase is budgeted at R77 million and is expected to take up to 6 months. Phase 1 was specifically scoped to utilize the window of opportunity before the rainy season, with excavation of the North boxcut having commenced in June 2009, which will ensure completion within the dry period.
Phase 2 of the project includes completion of the decline development, establishment of underground services and the reclamation of infrastructure, equipping of declines and strike sections, and re-establishment of stoping sections. Permanent surface infrastructure, such as mine services and overland conveyers will also be completed during this phase. This preparation, coupled with early production from the open pit area, will enable ramp-up of underground production, with reef stockpiling prior to resumption of milling operations. Completion of Phase 2 and production ramp-up to process plant resumption will require approximately 10 months. The detail engineering designs associated with Phase 2 are in process, and preliminary Capital Budget Estimates (CBE) have been completed, confirming the capital requirement for the entire project (including Phase 1 and 2) to be approximately
R 250 million.
Project execution is therefore proceeding as anticipated to place Everest in a state of readiness to resume operations. The decision to resume operations will, however be made in the context of prevailing metals prices and market conditions at the time.
Insurance
Discussions with insurers and underwriters were concluded and an insurance payment has been received during the financial year ending 30 June 2009.
Quarterly Report June 2009
Aquarius will be releasing its quarterly report for the three months ended 30 June 2009 on 31 July 2009. This is a few days later than is usually the norm to accommodate the prospectus with respect to the to the Ridge acquisition.
For further information please contact:
In Australia: In the United Kingdom In South Africa Willi Boehm Nick Bias Hugo Holl
willi@aquariusplatinum.com nickbias@aquariusplatinum.com hugo.holl@aquariussa.co.za
+61 (0)8 9367 5211 + 41 (0)79 888 1642 +27 (0)14 536 4001 REGISTERED OFFICE
Aquarius Platinum Limited Clarendon House 2 Church Street Hamilton HMCX Bermuda
Email: info@aquariusplatinum.com
Telephone: +61 8 9367 5211
The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"). The securities may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act. There will be no public offer of securities in the United States.
It is expected that the New Aquarius Shares will be issued in reliance upon the exemption from the registration requirements of the Securities Act provided by Section 3(a)(10) thereof. This transaction has not been approved or disapproved by the US Securities and Exchange Commission (the "Commission"), nor has the Commission or any US state securities commission passed upon the merits or fairness of the transaction nor upon the adequacy or accuracy of the information contained in this document. Any representation to the contrary is a criminal offence in the United States. The announcement has been prepared in accordance with English law and the Code and information disclosed may not be the same as that which would have been prepared in accordance with the laws of jurisdictions outside England.
Dealing disclosure requirements
Under the provisions of Rule 8.3 of the UK Takeover Code, if any person is, or becomes, "interested" (directly or indirectly) in 1 per cent. or more of any class of "relevant securities" of Aquarius or of Ridge, all "dealings" in any "relevant securities" of that company (including by means of an option in respect of, or a derivative referenced to, any such "relevant securities") must be publicly disclosed by no later than 3.30 pm (GMT) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the "offer period" otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an "interest" in "relevant securities" of Aquarius or Ridge, they will be deemed to be a single person for the purpose of Rule 8.3.
Under the provisions of Rule 8.1 of the UK Takeover Code, all "dealings" in "relevant securities" of Aquarius or of Ridge by Aquarius or Ridge, or by any of their respective "associates", must be disclosed by no later than 12.00 noon (GMT) on the London business day following the date of the relevant transaction.
A disclosure table, giving details of the companies in whose "relevant securities" "dealings" should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at www.thetakeoverpanel.org.uk.
"Interests in securities" arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an "interest" by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities.
Terms in quotation marks are defined in the UK Takeover Code, which can also be found on the Panel's website. If you are in any doubt as to whether or not you are required to disclose a "dealing" under Rule 8, you should consult the Panel.
A copy of this announcement will be available on Aquarius' website (www.aquariusplatinum.com).
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