FURTHERING its tilt at the South African platinum market, Platinum Australia has signed an agreement to acquire an interest in a third project in the platinum rich continent.
Platinum Australia said the acquisition of the Smokey Hills project, located in the eastern limb of South Africa’s Bushveld Complex, and its subsequent development offers the company significant value.
The company believes there is a target of up to 1 million ounces of platinum group metals (PGM) at Smokey Hills and hopes to commence mining within 18 months.
The project is also adjacent to Modikwa platinum mine – the operators of which are set to partner with Platnium Australia (49 per cent) in the advanced South African PGM play, the Kalahari Platinum project.
Under the Smokey Hills deal Platinum Australia will acquire Geoplat Resources, giving Platinum Australia control of 80 per cent of Smokey Hills.
The vendors of the project, who will initially retain a 26 per cent interest in Geoplat, will have the option of exchanging their retained stake for 15 million shares in Platinum Australia.
The remaining 20 per cent of the Smokey Hills Project is owned by the Limpopo Provincial Government (15 per cent) and the local community (5 per cent).
Platinum Australia has targeted South Africa since the beginning of this year after it put the development of its West Australian platinum palladium Panton project on hold.