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New MD for Nkwe as it completes funding with Chinese investor

New MD for Nkwe as it completes funding with Chinese investor

Photo by Bloomberg

5th May 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – South Africa-focused platinum developer Nkwe Platinum has appointed a new MD and nonexecutive director after completing a A$20-million convertible bond transaction with China’s Zijin Mining Group.

In 2013, Nkwe announced the strategic partnership with a subsidiary of Zijin Mining, Jin Jiang Mining, under which Jin Jiang invested A$20-million in Nkwe, through the placement of three-year convertible bonds, to develop its flagship Garatau project in South Africa.

Following the issue of convertible bonds, Nkwe and Jin Jiang in March this year agreed to the immediate conversion of the bonds, with Nkwe issuing more than 202.5-million shares to Jin Jiang.

The conversion meant that Nkwe expedited the previous debt-to-equity timelines with Jin Jiang, providing Nkwe with a strong balance sheet.

As part of the partnership with Zijin, Abraham Li has been appointed MD of Nkwe, while Robin Wang has been appointed a nonexecutive director of the ASX-listed company.

Sharif Pandor has also been appointed as nonexecutive chairperson.

Nkwe said on Monday that former MD Maredi Mphahlele would remain as an executive director of the company.

“The strategic partnership with Zijin will allow Nkwe to fulfill its key goal of developing its world class platinum group metal assets, and in particular the Garatau project, and to become a significant producer of platinum group metals,” newly appointed Pandor said.

A bankable feasibility study has estimated a capital requirement of about A$641-million to fund the development of a 3.6-million-ton-a-year operation, producing about 330 000 oz/y of platinum over an initial 17 years, at Garatau.

Nkwe previously said it hoped the project could be in production by 2015.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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