Platinum Australia and Impala Refining Services have signed an offtake agreement for the concentrate to be produced from Impala's Smokey Hills project.

The two companies have announced the deal, which will cover the anticipated seven-year life of mine production at Smokey Hills, with commissioning of the plant due to take place in June 2008.

Commenting on the deal, Platinum Australia Managing Director John Lewins said: "This agreement provides a guaranteed market for our product for the life of the mine and, while the terms of the agreement are obviously confidential, we believe them to be very competitive."

He added: "With the Smokey Hills plant due to commence commissioning in June 2008 and the current strong platinum price expected to be sustained in the medium term due to strong growth in demand and supply shortfalls, we believe PLA is poised to move into production at an optimum time."

Impala Platinum expects to produce in the region of 95,000 oz per year of platinum, gold, palladium, and rhodium at the site.

Sources:

Platinum Australia, Impala ink offtake agreement for Smokey Hills, 11/12/07
http://www.miningweekly.co.za/article.php?a_id=123373

Concentrate offtake agreement signed with Impala Refinery Services for the Smokey Hills mine, 11/12/07
http://www.gtp.com.au/platinumaus/inews_files/ASX0807JDL_111207.pdf

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