Vancouver — The South African Exchange Bank has given conditional approval to the proposed combination of
Pelawan’s planned reverse-takeover of Anooraq, announced earlier this year, will create the first North American-listed black economic empowerment (BEE) company and merge the platinum group mineral projects of both entities.
Anooraq will gain Pelawan’s half-interest in the Ga-Phasha platinum group metals project on the eastern limb of the Bushveld complex. Ownership of the advanced-stage project is shared with
Once the reverse-trading order is completed, Anooraq will become a qualified BEE — a requirement under South Africa’s new mining act for any development of new mines. Anooraq will also be the operator on the Ga-Phasha partnership with Anglo.
“It is a unique creation,” says Anooraq President Ronald Thiessen. “We are now a black economic empowerment company that trades in North American markets. We are actually a Canadian domiciled company, so we have access to North American capital, unlike other empowerment companies. That gives us a huge leg up and makes us definitely a preferred development partner. On top of that, we are a foreign direct investor in the country, so that when our money goes in, it has safety and security.”
Pelawan, in effect a consortium of 15 groups, will be issued 91.2 million Anooraq shares and paid up to 9.25 million rand (about $1.9 million) in return for its interest in Ga-Phasha. Of the shares issued, 89 million will held in escrow for the lesser of six years from the issue date or 12 months from the start of commercial production. Initially, Pelawan shareholders will hold more than 62% of Anooraq.
The 97-sq.-mile 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; there are also 137.4 million tonnes grading 4.32 grams PGMs in the inferred category. Within the Merensky Reef portion is a measured and indicated resource of 43.3 million tonnes of 4.39 grams PGMs, as well as 111.5 million inferred tonnes grading 7.1 grams PGMs.
The Bushveld complex hosts about 80% of the world’s platinum resources and accounts for more than 60% of global PGM production.
Anooraq closed at $1.95, down 26%, at presstime on high volume. The company has 54.1 million shares outstanding.
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