ASX-listed platinum miner Nkwe Platinum has announced that due to its examination of costs, it has decided to focus on its South Africa-based Garatau platinum project, resulting in the company voluntarily withdrawing its listing on the New York based OTCQX.This follows the companys announcement that it is at an advanced stage with other strategic partners regarding financing the development of its flagship Garatau mine. Further, mineral resources company Genorah Resources is still tied-up in negotiations with African Minerals Exploration and Development (AMED) fund regarding the previously announced transaction involving AMED becoming a significant shareholder in Genorah, and Genorah recapitalising Nkwe Platinum. Nkwe says it will raise AU$3million (R27.57 million) by undertaking a non-renounceable entitlement issue through the issue of 149, 206, 172 options, enabling its shareholders to acquire two new listed options.
It says that these options are exercisable at AU$0.10 on or before 31 March 2016 for every nine existing Nkwe shares held at the record date, which are six business days after the relevant prospectus document is lodged, at an issue price of AU$0.02 per option.The entitlement issue, which will be underwritten by Asia-based asset management company Komodo Capital, has managed to secure a short-term debt financing into Nkwe. This will be converted as rights entitlement or shortfall allocation of new options upon completion of the entitlement issue. The company has commenced with the preparation of the entitlement issue prospectus. Former option holders will be entitled to participate in a priority shortfall allocation to acquire one new option for every two expired options held as at 31 August 2011, while ensuring that former option holders have the ability to receive new options on the 1 for 2 basis.