Anooraq empowered through Pelawan combination

Vancouver – Anooraq Resources (ARQ-V) has consummated its marriage with South African Black Economic Empowerment (BEE) group Pelawan Investments through a reverse takeover of the former by the latter.

The result being that Anooraq is now a BEE, in fact the first to hold a primary listing on a North American stock exchange. The company also plans to acquire a secondary listing on the Johannesburg Stock Exchange.

A Black Economic Empowerment company is comprised of management and shareholders that are categorized as being historically disadvantaged South Africans. Under the recently revised South African mining legislation, development of a new mine in the country requires direct involvement of a BEE.

With the combination of the two companies now having concluded, Anooraq has acquired Pelawan’s 50% interest in the Ga-Phasha platinum group metals (PGM) project situated on the northeastern limb of the Bushveld Complex in South Africa. The PGM project is a 50/50 joint venture with Anglo American Platinum (AAPTY-Q).

The 9,700-hectare Ga-Phasha project covers portions of both the UG2 and Merensky Reefs, the two main PGM-bearing horizons in the Bushveld Complex. A measured and indicated resource of 65.7 million tonnes grading 6.97 grams PGMs (combined platinum, palladium, rhodium and gold) per tonne has been calculated within the UG2 Reef section of the property plus an additional 111.5 million tonnes of 7.1 grams PGMs of inferred resource. Within the Merensky Reef portion of the project, a measured and indicated resource of 43.3 million tonnes of 4.39 grams PGMs has been outlined plus an additional inferred 137.4 million tonnes of 4.32 grams PGMs.

The Bushveld, in northeastern South Africa, is the world’s largest known layered mafic intrusive hosting about 80% of the world’s platinum resources while accounting for over 60% of global PGM production.

Anooraq now has about 145.7 million shares outstanding, following the issuance to Pelawan. Following the combination of the entities, trading in the issue was flat, remaining in the $1.80-1.90 per share range with some elevated volume.