JOHANNESBURG (miningweekly.com) − JSE-listed Wesizwe Platinum would issue more than 829,9-million new ordinary shares in equity funding to industrial and precious metals producer Jinchuan, China-Africa Development Fund (CADFund) and Micawber this week.

This comes as all conditions, such as the approval of the South African competition authorities, as well as Chinese regulatory approvals being obtained by Jinchuan and CADFund, have been met.

Wesizwe said late on Friday that it had made an application to the JSE to list the ordinary shares.

The Jinchuan group and the CADFund have undertaken to provide $877-million in funding for the 350 000-oz/y Frischgewaagd-Ledig project.

Wesizwe will receive $227-million in equity funding and the Chinese consortium has also committed to a $650-million debt facility.

“There will be no further dilution of shares,” Wesizwe spokesperson Tracey Peterson tells Mining Weekly Online. “This is the commitment from the Chinese consortium to shareholders.”

Considered to be one of the largest investments by the Chinese in the South African platinum industry, the consortium would also cover the cost of the production that is required to bring the project to full production.

Peterson said that this transaction is significant and that the company remained confident that the R6,6-billion project would progress as scheduled.

First production was expected around 2017/18. Site clearing and excavation is under way. The first blast took place on April 5. “The first blast represents a momentous milestone for Wesizwe,” CEO Arthur Mashiatshidi said.

Benco Engineering conducted the blasting using underground emulsion charging units to open the ground.

TWP Projects, a Basil Read Group company, has submitted a full engineering, procurement and construction management proposal tfor the new twin vertical shafts (the main and ventilation shafts), a new plant and all surface infrastructure. This will be concluded once a project approval is received from the Wesizwe board.

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