Eastern Platinum to expand its operations through rights offer
VANCOUVER, British Columbia – Eastern Platinum (“Eastplats” or the “Company”) has announced the offering of rights to acquire common shares of the Company.
The Company provides all the existing shareholders of Eastplats an opportunity to directly fund the capital investment required to take advantage of the proposed opportunities. The Company intends to use the net proceeds on secondary projects, which are expected to begin in 2023 but which are not expected to be completed until the following year. The Company forecasts it has sufficient working capital to continue with its current operations in 2023, subject to the Retreatment Project option and loan assessment occurring in 2023.
The Company expects to use the net proceed from the Rights Offering to commence and/or complete, subject to the net proceeds from the Rights Offering, the following:
- restart underground operations at the Crocodile River Mine, develop eastern limb projects, and support ongoing operations;
- complete phase 3 of the Zandfontein Concentrator Plant;
- purchase Zandfontein laboratory equipment and instruments;
- upgrade information technology infrastructure, network, and equipment for South Africa operations;
- invest in Crocodile River Mine property improvement and equipment upgrades;
- develop Mareesburg project, subject to environmental work, legal compliance, and economic confirmation;
- complete environmental impact assessment at Spitzkop;
- complete additional eastern limb capital projects; and
- execute corporate capital projects including implementation of a financial, planning, and analysis tool and completion of tax and corporate structure work.
Eastplats owns directly and indirectly a number of PGM and chrome assets in the Republic of South Africa.
All of the Company’s properties are situated on the western limb of the Crocodile River Mine and eastern limb of Kennedy’s Vale, Spitzkop and Mareesburg projects within the Bushveld Complex, the geological environment that hosts approximately 80% of the world’s PGM-bearing ore.
Operations at the Crocodile River Mine currently include re-mining and processing its tailings resource to produce PGM and chrome concentrates from the Barplats Zandfontein tailings dam.
