Anooraq empowered through Pelawan

Vancouver — Anooraq Resources (ARQ-V) has consummated its marriage with Pelawan Investments, a South African black economic empowerment group, through a reverse-takeover of the former by the latter.

As a result, Anooraq is now a black economic empowerment company — indeed, the first such entity to hold a primary listing on a North American stock exchange. The company intends to acquire a secondary listing on the Johannesburg Stock Exchange.

A black economic empowerment company is defined as consisting of management and shareholders who are historically disadvantaged South Africans. Under South African mining legislation, development of a new mine in the country requires the direct involvement of such a company.

As a result of the recent merger, Anooraq acquires Pelawan’s half-interest in the Ga-Phasha platinum group metals project, on the northeastern limb of the Bushveld complex. The other half is held by Anglo American Platinum (AAPTY-Q).

The 97-sq.-km Ga-Phasha project covers portions of both the UG2 and Merensky Reefs, the two main PGM-bearing horizons in the region. A measured and indicated resource of 65.7 million tonnes grading 6.97 grams PGMs (combined platinum, palladium, rhodium and gold) per tonne has been calculated in the UG2 Reef section of the property, together with an inferred resource of 111.5 million tonnes grading 7.1 grams PGMs. In the Merensky Reef portion, a measured and indicated resource of 43.3 million tonnes grading 4.39 grams PGMs has been outlined, along with an inferred resource of 137.4 million tonnes grading 4.32 grams PGMs.

The Bushveld hosts about 80% of the world’s platinum resources and accounts for more than 60% of global PGM production.

Anooraq is pushing forward on preparation of a bankable feasibility study on Ga-Phasha.

The company is also advancing its other Bushveld PGM projects, including Drenthe, another joint venture with Anglo Platinum.

Pelawan was issued 91.2 million Anooraq shares and will be paid up to 9.25 million rand (about $1.9 million) for the half-stake in Ga-Phasha. Of the shares issued, 89 million are held in escrow for the lesser of six years from the issue date or 12 months from the start of commercial production. Pelawan shareholders now hold more than 62% of Anooraq, and this cannot be diluted to less than 52%.

Anooraq now has 145.7 million shares outstanding, following the issuance to Pelawan. Following the combination, trading remained in the range of $1.80-1.90.