Eastern Platinum Limited
TSX : ELR
AIM : ELR

Eastern Platinum Limited

March 29, 2006 09:30 ET

Eastplats Announces Completion of $150,000,000 Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 29, 2006) -

NOT FOR DISSEMINATION IN THE USA

Mr. Ian Rozier, President of Eastern Platinum Limited (the "Company") (TSX:ELR)(AIM:ELR), is pleased to announce that the Company has completed its previously announced (News Release dated March 16th, 2006) subscription receipt financing (the "Financing"). The Financing was arranged by a syndicate of investment dealers co-led by GMP Securities L.P. and Canaccord Capital Corporation and including, Orion Securities Inc., Raymond James Ltd. and Wellington West Capital Markets (the "Agents"). The Financing was fully subscribed for gross proceeds of $130 million and the Agents exercised their full over allotment option resulting in aggregate gross proceeds of $150 million.

The Subscription Receipts were sold by private placement to investors resident in Canada, the United States and Europe, pursuant to registration and exemptions under applicable securities legislation. The underlying securities will be subject to a hold period of four-months under Canadian securities laws. Each Subscription Receipt will, upon satisfaction of certain conditions, entitle the holder to receive, without further consideration, one unit (a "Unit") comprised of one common share of the Company and one-half of one share purchase warrant. Each whole warrant shall entitle the holder to acquire an additional common share at $1.80 for a period of three years. The share purchase warrants have been conditionally approved for listing on the TSX subject to compliance with its listing requirements (including sufficient distribution).

The financing relates to News Releases dated February 15th and February 21st, 2006 that refers to the Company's proposed acquisition (the "Acquisition") of a 100% interest in three private companies (the "Shareholders") that in aggregate own 210,000,000 common shares of Barplats Investments Ltd ("Barplats") representing a 69% interest in Barplats, a platinum group metals ("PGM's") producing company listed on the Johannesburg Stock Exchange that trades using the symbol BPL. The use of proceeds of the offering were detailed in a News Release dated March 16, 2006.

The net proceeds from the sale of Subscription Receipts will be held in escrow and released to the Company, subject to the satisfaction of certain terms and conditions concurrent with the exchange of the Subscription Receipts for the Units upon the closing of the Acquisition. In the event that such conditions are not satisfied by June 30, 2006, the Company will return the entire subscription price from the sale of the Subscription Receipts, together with accrued interest, to the Subscribers. The Financial and Acquisition have received the conditional approval of the Toronto Stock Exchange ("TSX"), subject to the satisfaction of certain requirements.

"This financing was a condition of the acquisition and its completion clears the way to proceed to closing. Eastplats is now fully funded and this enables us to provide the capital necessary for the planned expansion of operations at Crocodile River in order to achieve a significant increase in production, as well as to meet all our obligations and planned expenditures on Spitzkop, Kennedy's Vale and Mareesburg over the next three years," stated Ian Rozier.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy these securities in any jurisdiction.

The foregoing information may contain forward-looking statements relating to the future performance of Eastern Platinum Limited. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Corporation's filings with the appropriate securities regulatory authorities in Canada, which filings are available on SEDAR at www.sedar.com.

This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States. The Securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States unless an exemption from such registration is available.

The TSX has neither approved nor disapproved of the information contained herein.

Contact Information

  • Eastern Platinum Limited
    Ian Rozier
    President & CEO
    (604) 685-6851
    (604) 685-6493 (FAX)
    www.eastplats.com