Eastern Platinum (Eastplats) has approved a revised 2021 capital budget following the closing of a rights offering, which raised gross proceeds of C$11.8-million.
The company’s subsidiary, Barplats Mines, has now reserved an additional C$6.3-million (or R73-million) in capital funding for platinum group metal (PGM) expansions, resource and environmental assessments, legal compliance and site investment to expand the company’s revenue base and advance projects targeted based on expected value to the company.
Barplats will use part of the proceeds from the Eastplats rights offering to start and complete the reconfiguration and optimisation of the small-scale PGMs circuit, which also includes the funding for some of the initial work required to restart the main PGMs plant circuit.
Proceeds will also be used for upgrades and repairs to the Crocodile River Mine (CRM) Zandfontein underground shaft and rock winder to ensure they are available for PGM operations, as well as to complete the refurbishment of the existing PGMs main circuit to increase the capacity and opportunity for PGMs recovery and sales.
An underground assessment at CRM will also be undertaken and will include all chrome recovery activities in relation to the retreatment project.
The Mareesburg project’s environmental work will be continued to complete the environmental-impact assessment regarding the haul road and project, and prospecting and assessment work regarding the vertical furnace and pelletiser of chrome concentrates will also be undertaken.
Proceeds will also be used for capital requirements for care and maintenance, working capital and general and administrative costs.
“Confirmation of these projects after a challenging 2020 is further evidence of Eastplats' successful development plan, anchored by the retreatment project and chrome concentrate projection and rapidly expanding into the PGMs market,” Eastplats president and CEO Diana Hu said on February 11.