Nkwe recommends Zijin offer aceptance
PERTH (miningweekly.com) – The independent directors of South Africa-focused Nkwe Platinum have unanimously recommended a 10c a share takeover offer from shareholder Zijin Mining Group.
The 10c a share takeover offer was a 25% improvement on the 8c a share offer launched in March this year, and provided shareholders with a significant premium to the company’s trading prices, Nkwe said this week.
The offer valued Nkwe at around A$90-million, and represented a 233% premium to the company’s closing price on March 19, when the initial non-binding indicative offer was made, as well as a 194% premium to Nkwe’s one-month volume weighted average price.
Zijin, through its wholly-owned subsidiary Jin Jiang Mining, already holds a 60.47% share in Nkwe.
Nkwe has now entered into an amalgamation agreement with Zijin and its subsidiarys Gold Mountains, under which the company’s issued and outstanding shares would be cancelled, and the amalgamated company will be 100% owned by Gold Mountains.
“The amalgamation agreement with Zijin provides Nkwe shareholders a significant premium to trading prices prior to the announcement of Zijin’s non-binding indicative proposal, and also provides Nkwe shareholders with all cash certainty,” said independent director Richard O’Shannassy.
“The independent directors consider that the all cash certainty is attractive for Nkwe shareholders, given the future risks and uncertainties associated with Nkwe’s activities in South Africa.”
Nkwe is planning an underground platinum mine in South Africa capable of producing some 330 000 oz/y of platinum over an initial 17-year mine life.
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