Atlatsa Resources Corporation - Market Update and Renewal of
Cautionary Announcement
JOHANNESBURG,
Jan. 18, 2013 /CNW/ - Shareholders of
Atlatsa Resources Corporation ("Atlatsa" or the "Company") (TSXV:
ATL; NYSE MKT: ATL; JSE: ATL) are referred to the announcements
released on 2 February 2012,
3 May 2012, 14
June 2012, 27 July 2012,
7 September 2012, 22 October 2012 and 3
December 2012 respectively, relating to the agreement of key
terms in respect of a transaction to restructure, recapitalize and
refinance Atlatsa and the Bokoni group of companies ("Bokoni
group") (the "Restructure Plan"), as well as the media releases on
27 September 2012 and 2 October 2012 relating to the conclusion of the
interim implementation agreement relating to the consolidation of
the Bokoni group debt and consequent reduction in its cost of
borrowing ("the phase one agreement").
Re-commencement of operations after
unprotected strike
On 1 October, 2012
an unprotected strike commenced at Bokoni Platinum Mines ("Bokoni
Mine") as a consequence of the 2012 strike contagion within the
mining sector in South Africa. No
operations, other than essential services, took place at Bokoni
Mine between 1 October 2012 to
1 December 2012 when the unprotected
strike ended. Operations at Bokoni Mine re-commenced in mid
December 2012, subsequent to the
necessary safety inspections and workforce inductions having been
concluded.
The unprotected strike did not result in any
amendments to the existing wage agreement between Bokoni Mine and
its recognised Unions, due to expire in July, 2013. The current
Bokoni Mine workforce is approximately 5,000 people, comprising
3,500 own employees and 1,500 contractors.
As a consequence of the unprotected strike,
Bokoni Mine is estimated to have lost approximately 35,500 PGM Oz
(4E) of production during Q4 2012.
Subsequent to the annual Christmas break, the
start up of mine operations in January, 2013 has been implemented
according to plan, with both mine and processing operations having
normalised.
Operational plan and financing
strategy
The Bokoni Mine's future operational plan,
capital budgeting and financing strategy has been reviewed, having
regard to the negative impact of the unprotected strike and the
Company's intended strategy going forward. The results of this
review and its impact have been taken into consideration by the
Company and Anglo American Platinum Ltd pursuant to the parties
completing phase two of the Restructure Plan, anticipated to be
finalized during the first half of 2013.
Once the necessary internal and regulatory
approvals relating to phase two of the Restructure Plan have been
obtained, the Company will publish the financial effects of the
Restructure Plan and post its circular to shareholders seeking
necessary approvals for its implementation.
A further detailed announcement will be released
to the media in North America, on
the Securities Exchange News Service in South Africa, filed on SEDAR and EDGAR, and
published in the South African press, as soon as the financial
effects have been finalized, and the definitive transaction
agreements relating to phase two of the Restructure Plan have been
executed by the Company.
Shareholders are advised to continue exercising
caution when dealing in the Company's securities until a full
announcement is made.
Cautionary and forward-looking information
This document contains "forward-looking
statements" that were based on Atlatsa's expectations, estimates
and projections as of the dates as of which those statements were
made, including statements relating to the Bokoni Group restructure
and refinancing and anticipated financial or operational
performance. Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as "may",
"will", "outlook", "anticipate", "project", "target", "believe",
"estimate", "expect", "intend", "should" and similar
expressions.
Forward-looking statements are subject to known
and unknown risks, uncertainties and other factors that may cause
the Company's actual results, level of activity, performance or
achievements to be materially different from those expressed or
implied by such forward-looking statements. These include but are
not limited to:
- uncertainties related to the completion of the Bokoni Group
restructure and refinancing;
- uncertainties and costs related to the Company's exploration
and development activities, such as those associated with
determining whether mineral resources or reserves exist on a
property;
- uncertainties related to feasibility studies that provide
estimates of expected or anticipated costs, expenditures and
economic returns from a mining project;
- uncertainties related to expected production rates, timing of
production and the cash and total costs of production and
milling;
- uncertainties related to the ability to obtain necessary
licenses, permits, electricity, surface rights and title for
development projects;
- operating and technical difficulties in connection with mining
development activities;
- uncertainties related to the accuracy of our mineral reserve
and mineral resource estimates and our estimates of future
production and future cash and total costs of production, and the
geotechnical or hydrogeological nature of ore deposits, and
diminishing quantities or grades of mineral reserves;
- uncertainties related to unexpected judicial or regulatory
proceedings;
- changes in, and the effects of, the laws, regulations and
government policies affecting our mining operations, particularly
laws, regulations and policies relating to:
-
- mine expansions, environmental protection and associated
compliance costs arising from exploration, mine development, mine
operations and mine closures;
- expected effective future tax rates in jurisdictions in which
our operations are located;
- the protection of the health and safety of mine workers;
and
- mineral rights ownership in countries where our mineral
deposits are located, including the effect of the Mineral and
Petroleum Resources Development Act (South Africa);
- changes in general economic conditions, the financial markets
and in the demand and market price for gold, copper and other
minerals and commodities, such as diesel fuel, coal, petroleum
coke, steel, concrete, electricity and other forms of energy,
mining equipment, and fluctuations in exchange rates, particularly
with respect to the value of the U.S. dollar, Canadian dollar and
South African rand;
- unusual or unexpected formation, cave-ins, flooding, pressures,
and precious metals losses (and the risk of inadequate insurance or
inability to obtain insurance to cover these risks);
- changes in accounting policies and methods we use to report our
financial condition, including uncertainties associated with
critical accounting assumptions and estimates; environmental issues
and liabilities associated with mining including processing and
stock piling ore;
- geopolitical uncertainty and political and economic instability
in countries which we operate; and
- labour strikes, work stoppages, or other interruptions to, or
difficulties in, the employment of labour in markets in which we
operate mines, or environmental hazards, industrial accidents or
other events or occurrences, including third party interference
that interrupt the production of minerals in our mines.
For further information on Atlatsa, investors
should review the Company's Annual Report disclosed in the Form
20-F for the year ended December 31,
2011 filed on SEDAR at www.sedar.com and with the United
States Securities and Exchange Commission www.sec.gov and other
disclosure documents that are available on SEDAR at
www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release. The NYSE MKT LLC has neither approved nor disapproved
the contents of this press release.
SOURCE Atlatsa Resources Corporation