Emerging precious metals exploration and mining company Platfields Limited said today (11.09.08) that it plans to list on the Main Board of the JSE Limited before the end 2008, subject to prevailing market conditions and regulatory and other approvals.
The company's aim is to raise - in two phases - some R450 million in the short term to expedite its current exploration programme and initiate early, open-pit, cash-generative mining.
Formed in 2002, Platfields has two near-surface platinum group metal (PGM) exploration projects - Berg and Leeuwkop - on the Eastern Limb of the Bushveld Complex and one near-surface gold exploration project - Grootfonteinberg - in the Tranvaal Drakensberg goldfield of Mpumalanga.
Platfields CEO Bongani Mbindwane is unfazed by prevailing investor sentiment towards emerging precious metals explorer/producers and precious metals prices.
"What we have seen in recent weeks is an entirely understandable and arguably anticipated market shift after a good run. Precious metals fundamentals remain sound and we are likely to see a correction of this shift in the near term.
"This scenario, together with our ability to move rapidly through exploration to early, open-pit, cash-generative mining, presents those investing now in Platfields with real growth upside potential into the future."
Platfields is pursuing a ‘disciplined, phased' approach to exploration, Mbindwane says.
"Allied to this, we have a conservative capital-raising plan, geared to the current investment climate, in which we intend to raise through our JSE listing some R450 million in two tranches of R200 million and R250 million respectively."
Platfields' flagship Berg PGM Project covers some 6 000 hectares at the southern end of the Eastern Limb of the Bushveld Complex, along strike from Anglo Platinum's Der Brochen Project, Northam's Booysendal Project and Aquarius Platinum South Africa's Everest South mining operation.
The two most important PGM-bearing reefs are the UG2 and Merensky reefs. The UG2 outcrops in the north, pointing to prospects for early, open-pit, cash-generative mining. Exploration to date indicates a mean exploration target of 10.65 million ounces (MOz) of 4E PGE (platinum, palladium, rhodium and gold).
A R283.7 million, three-phase, 232-hole exploration drilling programme to increase confidence in the Berg Project's geology and category of stated Minerals Resources got under way in recent weeks.
The company's Leeuwkop PGM Project, in which it has a 32.5% interest, is a near-surface target covering 600 hectares at the north-western end of the Eastern Limb of the Bushveld Complex, immediately west of the Anglo Platinum/Anooraq Lebowa Platinum Mine and close to both Lonmin's Limpopo Platinum Mine and Aquarius Platinum South Africa's Bakgaga Project.
As with the Berg PGM Project, the principal targets are the Merensky and UG2 reefs.Exploration to date indicates an attributable target resource of up to 1.95M Oz of 4E PGE. Planned exploration phases include field mapping and a R24.1 million, two-phase drilling programme comprising 29 boreholes.
The Grootfonteinberg Gold Project, covering a total of 301.1 hectares, adjacent to Simmer and Jack's Beta Gold Mine. Exploration to date indicates a possible target of up to 3.43MOz of gold. Further planned exploration includes surface mapping, aeromagnetic and radiometric surveys and a R17.1 million, two-phase drilling programme comprising 13 boreholes.
Mbindwane says that, while Platfields values its independence, it is mindful of the logic driving consolidation of Bushveld Complex explorers and producers, and "will actively pursue collaborative opportunities with other, like-minded companies when and where it makes sound business sense to do so".
Platfields is currently 37% black-owned. The balance of its shareholding comprises of 1 600 individual shareholders, making the company truly diverse and broad-based in its shareholding structure.
James Duncan
Russell and Associates
27 11 880-3924
27 82 892-8052
Bongani Mbindwane
Chief Executive
E-mail: bongani@platfields.co.za
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