Eastern Platinum Limited

June 25, 2013 02:00 ET

Crocodile River Mine to Be Placed on Care and Maintenance; Section 52 Notice Issued



June 24, 2013

Crocodile River Mine to Be Placed on Care and Maintenance; Section 52 Notice Issued

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 24, 2013) - Eastern Platinum Limited
(TSX:ELR)(AIM:ELR)(JSE:EPS) ("Eastplats" or the "Company") reports that a Section 52
Notice in terms of the Mineral and Petroleum Resources Development Act ("MRPDA") of 2002
was submitted to the Minister of Mineral Resources of South Africa on June 22, 2013 with
respect to the curtailing of mining operations at the Crocodile River Mine ("CRM"). This
follows the Company's decision to suspend funding for CRM for the reasons outlined in the
news release of April 19, 2013.

On April 22, 2013 Barplats Mines Limited ("BML") issued notices to employees in terms of
Section 189 of the Labour Relations Act 66 of 1995 ("the LRA") with respect to a Care and
Maintenance and Restructuring proposal for CRM. BML also requested that the Commission
for Conciliation, Mediation and Arbitration appoint a facilitator for the requisite 60-
day consultation process. This consultation process with the unions and other
representatives ended upon the expiry of the 60-day period on June 21, 2013.

Three unions representing 47% of the total workforce concluded a Settlement Agreement
with the Company and have recommended acceptance to their Members in return for full and
final settlement of all and any claims between the Company and Members of those unions.
One union has not recommended acceptance of the Company's retrenchment proposal.
Employees who do not accept the full and final settlement proposal will receive the
Company's retrenchment package made at the final facilitated consultation meeting.

As stated in the Section 52 Notice, mining operations at CRM are to be scaled down with
the effect that approximately 92% of CRM's employees are either to be retrenched or their
employment terminated by mutual agreement. The Company will be meeting all its
commitments with respect to its environmental management programs and the relevant
aspects of its Social and Labour Plan.

Production at CRM will be scaled down with effect from June 22 and will cease by the end
of July 2013. Production will not resume until it is clear that there can be economic and
sustainable production from CRM.

Eastplats has made a significant investment in infrastructure at CRM, and BML's Care and
Maintenance proposal for the mine will ensure that the mine remains in a state of
operational readiness in order to take advantage of this investment and to secure future
employment opportunities for when economic conditions and the operating environment

"This is a very regrettable outcome. However, BML's Care and Maintenance proposal is the
best for all stake holders since nobody wants to see the mine close permanently. We have
been struggling through a perfect storm of increasing costs on all fronts and depressed
metal prices. With ongoing labour unrest that continues to negatively impact productivity
throughout the South African mining sector, the stagnant commodity market, and rising
costs, it has become impossible to justify continued production operations at this time,"
stated Ian Rozier, President and CEO.

Total shares issued and outstanding - 928,187,807

Cautionary Statement on Forward-Looking Information

This press release, which contains certain forward-looking statements, is intended to
provide readers with a reasonable basis for assessing the financial performance of the
Company. All statements, other than statements of historical fact, are forward-looking
statements. The words "believe", "expect", "anticipate", "contemplate", "target", "plan",
"intends", "continue", "budget", "estimate", "may", "will", "schedule" and similar
expressions identify forward looking statements. These forward-looking statements pertain
to assumptions regarding the price of PGMs, fluctuations in currency markets
(specifically the Rand and the U.S. dollar), the future funding of the Company's
projects, the future development of the Company's projects, the Company's plans for its
properties, the anticipated timing for the awarding of tenders, and the accounting
policies issued but not yet effective for the Company. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that, while considered
reasonable by the Company, are inherently subject to significant business, economic and
competitive uncertainties and contingencies. Known and unknown factors could cause actual
results to differ materially from those projected in the forward-looking statements. Such
factors include, but are not limited to, the risk of fluctuations in the assumed exchange
rates of currencies that directly impact the Company, such as Canadian dollar, South
African Rand and U.S. dollar, the risk of fluctuations in the assumed prices of PGM and
other commodities, the risk of changes in government legislation, taxation, controls,
regulations and political or economic developments in Canada, the United States, South
Africa, or Barbados or other countries in which the Company carries or may carry on
business in the future, risks associated with mining or development activities, the
speculative nature of exploration and development, including the risk of obtaining
necessary licenses and permits, and assumed quantities or grades of reserves. Many of
these uncertainties and contingencies can affect the Company's actual results and could
cause actual results to differ materially from those expressed or implied in any forward-
looking statements made by, or on behalf of, the Company. Readers are cautioned that
forward-looking statements are not guarantees of future performance. There can be no
assurance that such statements will prove to be accurate and actual results and future
events could differ materially from those acknowledged in such statements. Specific
reference is made to the Company's most recent Annual Information Form on file with
Canadian provincial securities regulatory authorities for a discussion of some of the
factors underlying forward-looking statements.

The Company disclaims any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or otherwise, except to
the extent required by applicable laws.


Eastern Platinum Limited
Ian Rozier
President & C.E.O.
+1-604-685-6493 (FAX)


NOMAD: Canaccord Genuity Limited, London
Andrew Chubb
+44 (0) 207 7523 8000


NOMAD: Canaccord Genuity Limited, London
Ross Allister
+44 (0) 207 7523 8000


JSE SPONSOR: PSG Capital (Pty) Limited
Johan Fourie
+27 21 887 9602

No stock exchange, securities commission or other regulatory authority has approved or
disapproved the information contained herein.

Contact Information

  • Eastern Platinum Limited