JOHANNESBURG (miningweekly.com) – Junior-miner Pan African Resources and its subsidiary, Phoenix Platinum, have signed an interim exclusivity agreement with International Ferro Metals (IFM) in relation to the siting and construction of its planned Phoenix Chrome Tailing Retreatment Plant (CTRP), on IFM’s property.

The parties would, in terms of the agreement, be allowed to negotiate exclusively for a 12-month period to finalise the CTRP site location on IFM’s property, as well as to resolve any technical issues related to the required services and associated facilities and utilities, it reported in a statement on Friday.

Further, the agreement also outlined the terms under which Phoenix Platinum could acquire the 25% net profit interest (NPI) held by IFM in the platinum-group metals contained in the IFM Lesedi operation’s tailings fraction that would be treated through the CTRP.

The total consideration for the CTRP site location and acquisition of the NPI has been set at R80-million in cash, while a R2-million nonrefundable exclusivity fee was payable by Phoenix to IFM.

Pan African Resources noted that the exclusivity agreement could also be extended by a further six months, if all parties agreed.

“The signature of this agreement marks a significant milestone in advancing our Phoenix project to production. Final plant design engineering work is expected to be completed within four months after the conclusion of a formal CTRP and NPI agreement, whereupon the CTRP construction will commence,” said Pan African CEO Jan Nelson.

He added that the CTRP would likely be commissioned within 12 months after the start of earthworks, with the first half of 2012 seen as a “realistic production start-up date”.

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