Company Annoucements:Zijin Mining Group To Proceed With Strategic Partnership
This article has been supplied.
As previously announced, Nkwe has formed a strategic partnership with Zijin to further the development of Nkwe South African PGM assets, and in particular the flagship Garatau Mining Project.
Zijin, through its wholly-owned subsidiary Jin Jiang Mining Limited (“Jin Jiang”), will invest AUD$20 million in Nkwe by a placement of 3 year convertible bonds (“Transaction”). Shareholder approval for the Transaction was recently obtained by the Company.
Transaction to Proceed
The Company is pleased to advise that the parties have agreed that Completion will occur in two tranches:
• the first tranche of AUD$7m convertible bonds will be issued on or before 23 October 2013 (“First Tranche”); and
• the second tranche of AUD$13m convertible bonds will be issued on or before31 December 2013 (“Final Tranche”). To complete funding under the FinalTranche, Zijin and Nkwe are working together to complete additional securityarrangements (including registration of such security interests) to satisfy one ofthe final Conditions Precedent under the original Convertible Bond Subscription Agreement.
Approximately AUD$5m of the funds received under the First Tranche will be used to refinance the current security package relating to the Genorah loan. As part of this refinancing, Zijin will hold security over Genorah’s shares in the Company until completion of the Final Tranche. The remaining AUD$2m of the funds will be used for the Company’s working capital requirements.
Due to the proposed timing for completion of the Final Tranche, Nkwe will apply to ASX for a waiver in respect of Listing Rule 14.7 seeking to extend the date by which AUD$13m of the convertible bonds must be issued.The completion of the First Tranche is a significant milestone for Nkwe as it moves to commence development of the Garatau Project with Zijin.
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