Eastplats renews its agreements with its subsidiary, its financial backer
JSE-listed Eastern Platinum (Eastplats) has updated reprocessing project agreements, building on the original agreements signed between its subsidiary Barplats Mines and Union Goal Offshore Solution in 2018.
Updated Reprocessing Project Agreements include a Revised Master Agreement, Offtake Agreement, Loan Agreement, and Equipment and Plant Agreement.
Operations at Barplat’s Crocodile River mine in South Africa’s Bushveld complex include reworking and processing of its tailings resources, with chrome concentrate offtake to Union Goal from the processing facility upper group tailings from Barplats Zandfontein – the reprocessing project – and the processing and mining of platinum group metals (PGMs).
Earlier in March, the company reported a review of the Reprocessing Project’s operations for 2019 and 2020.
The updated Reprocessing Project Agreements capitalize on two years of operational knowledge and Eastplats’ continued commitment to the long-term benefits of the project.
Eastplats and Barplats retain the put option and Union Goal retains the call option for the repurchase of the equipment and the loan from the reprocessing project, in the event that the two parties cannot agree on the price of the entire circuit once the evaluation is complete.
The updated agreement stipulates a rate charged on each tonne mined of R43.17/t for 2021, taking into account adjustments to the consumer price index in South Africa.
Barplats has been granted an extension of the maturity date of its construction loan and equipment payment to 210 days following the commissioning of optimized equipment and circuits, currently delayed due to Covid-19.
Eastplats CEO Diana Hu says the reprocessing project and the magnetic separation flotation technology used transformed Eastplats from a company with potential but no operating or cash flow into a resource company generating revenue and mining revenue at from chrome concentrate and its MGP operations and with multiple project opportunities for this year and beyond.