Wesizwe Platinum signs term sheet to secure a US$877 million (R6.6 billion) financial package
24 May 2010
Johannesburg, 24 May 2010: Wesizwe Platinum Limited (“Wesizwe Platinum” or “the Company”) is pleased to announce that it has signed a term sheet with a Chinese consortium, consisting of Jinchuan Group Limited (“JNMC”) and the China- Africa Development Fund (“CADFund”), to provide Wesizwe Platinum with a total financing solution for the development of its Frischgewaagd-Ledig project.
The proposed transaction will include an equity as well as a debt component, a financial guarantee and/or a shareholder loan commitment, and an off-take agreement that will guarantee all platinum group metals (“PGM”) concentrate sales.
Wesizwe Platinum Chairman, Dawn Mokhobo, commented: “The Board of Directors of the Company believe that this proposed transaction represents a compelling and strategic value proposition as it provides shareholders with a fully financed project. Importantly, it ensures that there is no further equity dilution through the project’s construction phase. Our shareholders, therefore, retain their exposure to one of the best quality undeveloped PGM projects in South Africa.”
Wesizwe Platinum Chief Executive, Michael Solomon, added: “On 22 April 2010, the Department of Mineral Resources awarded the final Section 11s for the Frischgewaagd-Ledig project, effectively enabling the awarding of the mining right over the project area, and I am exceptionally pleased that the project will be further derisked, through this transaction, with the provision of the total financing solution.”