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Nkwe secures A$4.5m facility, recapitalisation talks continuing

18th January 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) - South Africa-focused platinum developer Nkwe Platinum on Friday said it was still in discussions with the African Mineral Exploration and Development Fund (AMED) and its black economic-empowerment partner Genorah Resources, regarding its recapitalisation.

The miner went into a trading halt at the start of this year, after a term sheet entered into between Nkwe, Genorah and Gleneagles Securities lapsed. Genorah, in turn, paid back the outstanding loan, which amounted to some A$2.8-million, through a refinancing deal with AMED.

Although the details of the Nkwe recapitalisation were still being finalised, the miner said on Friday that the transaction would see AMED become a significant shareholder in Genorah, and through that position, would enable Genorah to recapitalise Nkwe.

While the transaction was still being finalised, a working capital facility of A$4.5-million had been approved, and secured against Genorah’s shareholding in Nkwe.

Nkwe said the facility would provide the company with working capital funding while AMED, Genorah and Nkwe finalised the larger strategic partnership transaction.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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