Aquarius Platinum Agreement to sell Everest Mine to Northam

 
TIDMAQP 
 
AQUARIUS PLATINUM LIMITED 
 
ASX, LSE & JSE 
 
10 February 2015 
 
           Aquarius ENTERS AGREEMENT to sell Everest Mine to Northam 
 
                               for R450 million 
 
Aquarius Platinum Limited (AQP) is pleased to advise that its subsidiary, 
Aquarius Platinum (South Africa) (Pty) Ltd (AQPSA), has entered into an 
agreement to sell AQPSA's entire interest in the Everest mine and related 
mining and processing infrastructure and immovable properties (Everest) to 
Northam Platinum Limited (Northam) (together the "Disposal"), for an aggregate 
consideration of R450 million, payable in cash. Everest mine was placed on 
care-and-maintenance in June 2012 in light of market conditions prevailing at 
that time. As at 30 June 2014 the gross assets of Everest were US$36 million 
and the loss before tax attributable to Everest was $7.2 million. 
 
The Disposal is to be completed in two parts: 
 
  * Northam will pay AQPSA R400 million on 26 June 2015 to acquire the 
    concentrator plant and other mining assets of the Everest Mine. This 
    payment is conditional on approval of the Competition Commission and the 
    Bakone Ba Phetla Communal Property Association agreeing to cancel the 
    existing lease of its immovable property to AQPSA and entering into a new 
    written lease with Northam by 23 June 2015 (Competition Approval); 
 
  * Northam will pay AQPSA R50 million to acquire the Everest mining right (and 
    all the obligations of AQPSA in respect of that right). This payment is 
    conditional upon the conditions to the first part of the sale being 
    fulfilled and the Minister of Mineral Resources granting consent to the 
    transfer of the Everest mining right to Northam in terms of section 11 of 
    the Mineral and Petroleum Resources Development Act (Ministerial Consent) 
    within three years of the signing of the sale agreement. 
 
Should the Ministerial Consent not be obtained in time the first part of the 
Disposal will not be unwound. 
 
Northam will assume responsibility for carrying out the care and maintenance 
services and providing contract mining services at the Everest Mine during the 
period between the date of grant of the Competition Approval and the date of 
Ministerial Consent. 
 
AQP is in discussions with the UK Listing Authority regarding the 
classification of the Disposal as either a class 1 or a class 2 transaction 
under Chapter 10 of the Listing Rules. If the Disposal is a class 1 transaction 
pursuant to the Listing Rules, the Disposal will require the approval of AQP's 
shareholders. AQP will announce the outcome of these discussions once they have 
been concluded. 
 
AQP CEO Jean Nel noted that the sale presents a valuable opportunity to a broad 
range of stakeholders. "For AQP, the proceeds from the Disposal will be used to 
increase AQP's net cash and to strengthen the balance sheet in a somewhat 
challenging market, and is in line with our stated objective of focussing on 
our core operations at Kroondal and Mimosa and associated projects. And, at the 
same time, the potential re-starting of the mine is expected to bring benefits 
to local communities, both directly in terms of job creation and corporate 
social investment, and indirectly through the associated benefits of economic 
activity in the region." 
 
Jean Nel added that, in reaching its decision to sell Everest, AQP considered 
the capital that would be required to restart mining at Everest on a 
stand-alone basis, the potential for AQP to combine Everest with other 
operations in the area, the metal prices that would be required to deliver an 
appropriate risk-adjusted return to invest the capital and alternative 
investment propositions available to AQP. 
 
"Management's view as AQP was that the sale of Everest, which is superfluous to 
our present business plan, delivers the most appropriate realisation of value 
from the Everest assets." 
 
About Aquarius Platinum Group 
 
The Aquarius Platinum Group is a focused, independent, primary producer of the 
platinum group metals, which comprise platinum (Pt), palladium (Pd), rhodium 
(Rh), osmium (Os), ruthenium (Ru) and iridium (Ir). The Aquarius Platinum Group 
has assets in South Africa's PGM-bearing mineralised zone, the Bushveld 
Complex, and the Great Dyke Complex in Zimbabwe. 
 
Forward-looking statements 
 
This announcement includes statements that are, or may be deemed to be, 
"forward-looking statements". These forward-looking statements can be 
identified by the use of forward-looking terminology, including the terms 
"believes", "estimates", "plans", "projects", "anticipates", "expects", 
"intends", "may", "will", or "should" or, in each case, their negative or other 
variations or comparable terminology, or by discussions of strategy, plans, 
objectives, goals, future events or intentions. These forward-looking 
statements include all matters that are not historical facts. They appear in a 
number of places throughout this document and include, but are not limited to, 
statements regarding AQP's intentions, beliefs or current expectations 
concerning, among other things, AQP's results of operations, financial 
position, prospects, growth, strategies and the industry in which it operates. 
By their nature, forward-looking statements involve risk and uncertainty 
because they relate to future events and circumstances. Forward-looking 
statements are not guarantees of future performance and the actual results of 
AQP's operations and financial position, and the development of the markets and 
the industry in which AQP operates, may differ materially from those described 
in, or suggested by, the forward-looking statements contained in this document. 
In addition, even if the results of operations, financial position and the 
development of the markets and the industry in which AQP operates are 
consistent with the forward-looking statements contained in this document, 
those results or developments may not be indicative of results or developments 
in subsequent periods. A number of factors could cause results and developments 
to differ materially from those expressed or implied by the forward-looking 
statements including, without limitation, general economic and business 
conditions, industry trends, competition, changes in regulation, currency 
fluctuations, changes in its business strategy, political and economic 
uncertainty and other factors discussed in this announcement. Forward-looking 
statements may, and often do, differ materially from actual results. Any 
forward-looking statements in this document speak only as of their respective 
dates, reflect AQP's current view with respect to future events and are subject 
to risks relating to future events and other risks, uncertainties and 
assumptions relating to AQP's operations, results of operations and growth 
strategy. Subject to the requirements of the Financial Conduct Authority, the 
London Stock Exchange, the Listing Rules and the Disclosure and Transparency 
Rules (and / or any regulatory requirements) or applicable law, AQP explicitly 
disclaims any obligation or undertaking publicly to release the result of any 
revisions to any forward-looking statements in this document that may occur due 
to any change in AQP's expectations or to reflect events or circumstances after 
the date of this document. No statement in this document is intended as a 
profit forecast or profit estimate, nor should any statements be interpreted to 
mean that earnings or earnings per share will necessarily be greater or lesser 
than those for the relevant preceding financial periods of AQP. 
 
For further information please contact: 
 
In Australia: 
 
Willi Boehm 
 
Aquarius Platinum Corporate Services Pty Ltd 
 
[phone] 
 
In South Africa: 
 
Jean Nel 
Aquarius Platinum (South Africa) (Pty) Ltd 
 
[phone] 
 
or visit: www.aquariusplatinum.com 
 
 
REGISTERED OFFICE 
 
Aquarius Platinum Limited ? Clarendon House ? 2 Church Street ? Hamilton HMCX 
Bermuda 
 
Email: [e-mail] 
 
Telephone: [phone] 
 
 
 
 
 
END