Platmin to purchase stake in Sedibelo platinum project

Platmin has finalised an agreement to acquire a ten per cent stake in the Sedibelo platinum project in South Africa, it has been confirmed.

The company will purchase the stake from Barrick Gold for $15 million, with the remaining 90 per cent continuing to be owned by the Bakgatla-Ba-Kgafela Tribe.

Sedibelo is located between the Pilanesberg Platinum Mine and the Magazynskraal property on the eastern limb of the Bushveld Complex and a Platmin subsidiary is carrying out a bankable feasibility study on the latter.

"I am very pleased that, after extensive negotiations, Platmin has managed to secure this ten per cent interest in Sedibelo, as well as key long-lead items essential for mining development," said Platmin Chief Executive Tom Dale.

"This transaction positions Platmin well for the participation in any regional development."

Barrick, the world's largest gold producer, revealed that it decided to accept the Platmin deal - which will be completed in the second quarter of 2010 - over a number of other offers.

"After due consideration, we accepted the Platmin offer, and hope the property will be developed to its full potential and for the benefit of all stakeholders," commented Senior Vice-President Cassie Boggs.

Meanwhile, Platmin has also announced that it is planning to raise up to $250 million in new equity through the filing of a preliminary short form prospectus in Canada.

The move, which will see common shares offered on a private basis only, will allow the firm to secure operational and working capital funding for projects such as Sedibelo.

Barrick completed a bankable feasibility study for Sedibelo but confirmed in October 2009 that it would not be developing the mine as a result of platinum prices at the time.

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