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Impala Platinum, Orosur Mining, Vane Minerals news briefs

Contributed by Fox-Davies Capital

Impala Platinum Holdings has announced that it has concluded a non-binding term sheet in respect of proposed indigenisation plan for its 87% subsidiary Zimplats with the Government of Zimbabwe (as represented by the Ministry of Youth Development, Indigenisation and Empowerment). Zimplats will sell an aggregate 51% equity ownership of Zimbabwe Platinum Mines (Private) Limited to selected Indigenous Entities (10% to the Zimplats Mhondoro-Ngezi Chegutu Zvimba Community Share Ownership Trust for the benefit of communities surrounding the business operations, 10% to an employee share ownership trust for the benefit of all full time indigenous employees and 31% to the National Indigenisation and Economic Empowerment Fund) for US$971m (R8.3billion), after taking into account the payment for the release of ground obligation (in lieu of indigenisation credits). Zimplats Holdings will facilitate the Transaction by providing vendor funding to the Indigenous Entities at an interest rate of 10% per annum. The vendor financing will be repayable from 85% of the dividends declared by Zimplats on the Indigenisation Shares. The proceeds, as and when received by Zimplats Holdings, will be declared as a dividend to Implats or used to fund Zimplats Holdings' share of funding requirements of Zimplats. Management of Zimplats will remain with Zimplats Holdings. Should future funding be raised by equity subscriptions, then all parties are required to contribute their respective pro rata share, failing which dilution is provided for. It was further agreed that by 30 June 2013 the Government would use its best endeavours in good faith to, amongst other things - amend the 2012 Mining Regulations to reduce all ground rentals payable by Zimplats to the same levels as were in force immediately prior to the promulgation and coming into force of the 2012 regulations and amend the Mining Agreement and fiscal terms currently applicable to Zimplats such that Additional Profits Tax and royalty rates are no worse than those granted/provided to any other Platinum Group Metal mining entity operating in Zimbabwe.

Orosur Mining released it 2Q results to the end of November 2013. Gold production for the quarter was 13,970oz slightly below forecast due to lower grades from Crucera open pit which also increased cash costs to US$1,215/oz excluding royalties and capital tax. The Company remains on track to produce between 63-68koz for the full year at a slightly higher average cost of US$1,000 to US$1,065/oz compared to the US$975/oz forecast in October. Capital expenditure for the first half was US$11.75m, however in the 2H'13 the Company plants to commit up to US$4m of additional capital expenditure in the second half of the year to accelerate the "pre-strip" of the San Gregorio extension that had been planned to commence in the next financial year. The Company has also incurred additional exploration expenditure to earn its interest in Pantanillo during the first half and plan, following a positive review of the project, to complete the initial acquisition of 25% of the Talca asset. Together with San Gregorio these investments will reduce the expected cash balance at year end in May to approximately US$8m from the Company's guidance of US$15m in October. The Company finished the period with cash and equivalents of US$3.7m.

Vane Minerals PLC announced a trading update for its Wate uranium project. The Wate Mining Company LLC has submitted the application to obtain a Mineral Lease on the Wate project to the Arizona State Land Department (ASLD). The Wate project is held in Wate Mining Company LLC which is owned 50:50 by VANE Minerals (US) LLC and Uranium One Exploration, U.S.A. Inc. VANE is the operator of Wate Mining Company LLC. A Mineral Lease gives authority to develop the project contingent on obtaining environmental compliance permits from the Arizona Department of Environmental Quality (ADEQ). VANE has concluded pre-application conferences with ADEQ and is making arrangements with environmental consulting firms to handle the permit application and permitting process with a goal of submitting the ADEQ applications by April 2013. According to ASLD and ADEQ, the timing for approval is 12-18 months from application for both processes, which can run simultaneously. VANE therefore anticipates that Wate Mining Company LLC will receive approval to commence development of the Wate project between April and October 2014. The Wate Project has a NI 43-101 compliant resource of 1.118m lbs e U3 O8 at an average grade of 0.79% e U3 O8.