https://stockhouse.com/news/press-releases/2021/02/11/eastern-platinum-limited-confirms-additional-investment-into-site-development
Eastern Platinum Limited Confirms Additional Investment into Site Development and Growth
Vancouver, British Columbia--(Newsfile Corp. - February 11, 2021) - Eastern Platinum Limited (TSX: ELR) (JSE: EPS) ("Eastplats" or the "Company") is pleased to confirm the Board of Directors of the Company approved the revised 2021 capital budget following the closing of the rights offering (gross proceeds - CDN$11.8 million) (See news release of January 25, 2021). The Company's subsidiary, Barplats Mines (Pty) Ltd. ("Barplats") has now reserved an additional ZAR73 million (CDN$6.3 million) (including the commitments announced February 2, 2021) in capital funding for platinum group metals ("PGM") expansions, resource and environmental assessments, legal compliance and site investment to expand the Company's revenue base and advance projects targeted based on expected value to the Company.
Barplats will use part of the proceeds from the Eastplats rights offering to commence and complete the following:
Reconfigure and optimize the small-scale PGM circuit (previously the scavenger plant circuit) ("PGM Circuit D") which also includes funding for some of the initial work required to restart the main PGM plant circuit ("PGM Main Circuit") (See press release of February 2, 2021);
Upgrades and repairs to the Crocodile River Mine ("CRM") Zandfontein underground shaft and rock winder to ensure they are available for PGM operations;
Completion of the refurbishment of the existing PGM Main Circuit to increase the capacity and recovery opportunity of PGM recovery and sales;
Mareesburg project environmental work to complete the environmental impact assessment ("EIA") regarding the haul road and project;
Prospecting and assessment work in relation to Zandfontein, Crocette and Spitzkop ore bodies;
Feasibility and assessment work regarding a vertical furnace and pelletizer of chrome concentrate;
CRM underground assessment including all chrome recovery activities in relation to the Retreatment Project; and
Capital requirements for care and maintenance, working capital and general and administrative costs.
Diana Hu, the President and CEO of Eastplats, stated that "confirmation of these projects after a challenging 2020 is further evidence of Eastplats' successful development plan, anchored by the Retreatment Project and chrome concentrate production and rapidly expanding into the PGM market. The Company looks forward to the completion of the various projects and the development of all these opportunities in South Africa for its shareholders."
About Eastern Platinum Limited
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 and eastern limbs of 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, with an offtake of the chrome concentrate from the Barplats Zandfontein UG2 tailings facility and the processing and extraction of PGMs ("Retreatment Project").