Absolute Holdings has confirmed that it will complete its purchase of Bauba to create a new pgm miner in South Africa.

The company has received irrevocable agreements from its shareholders to conclude the R340.6 million deal for the platinum explorer after its annual general meeting on Monday (7th June).

As part of the transaction, Absolute will change its name to Bauba Platinum and gain access to its target's 12,700-hectare property on the Bushveld Complex in Limpopo.

According to Pine Pienaar, the Chief Executive of the prospective company, the site offers a targeted reserve of about 138 million ounces of pgms.

"Everybody knows the energy problem in SA - we'll be designing this mine as a low-cost producer, taking the electricity costs into account when looking at size, ventilation, refrigeration and so on," he said.

Bauba Platinum is now expected to begin production in about seven years' time, although mining operations may commence sooner, depending on the success of its fundraising plans.

The Bushveld Complex property will take seven months to reach inferred resource status and would need to produce an initial 280,000 oz of pgms per year to be viable.

Absolute Holdings' principal activity at present is the mining and retailing of tiles and related products.

Source:

New platinum miner to emerge from buyout (02/06/10)

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