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Aquarius Platinum has advised that it has reached agreement with a wholly owned subsidiary of Anglo American Platinum (Amplats) to extend the Kroondal PSA arrangement.

The terms of the agreement include Amplats contributing 9.91 Mt @ 2.38 g/t Proved Ore Reserves and  6.06 Mt @ 2.48 g/t Probable Ore Reserves to the Kroondal mine.

The reserves are located immediately down-dip of the current Kroondal mine and will be mined from the existing Kroondal underground mining infrastructure and  treatment plants.

Meanwhile, in exchange for Amplats contributing the additional reserves, AQPSA is expected to contribute the use of its infrastructure; continue to manage the PSA on the existing terms and conditions;  sell AQPSA’s share of concentrate produced from the additional reserves to Amplats as per the existing Off-take agreement; and pay Amplats a variable royalty with a base rate of R11.50 per ton mined, as and when mined.

The royalty will increase and decrease in line with increases and decreases in the rand metal price with a cap of R14.95 per ton and floor of R8.05 per ton.

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