South African focused PGM exploration and development company Nkwe Platinum has reached a key milestone in the development of its world class PGM assets, with the formation of a strategic partnership with China-based mining firm Zijin Mining Group in respect of the development of Nkwe South African PGM assets, and in particular the flagship Garatau mining project.Nkwe advised that Zijin Mining, through its wholly-owned subsidiary Jin Jiang Mining, will invest AU$20 million in Nkwe Platinum by a placement of 3-year convertible bonds which, subject to adjustment for certain events, are convertible into 200 million Nkwe shares at a conversion price of AU$0.10 per share. “The strategic partnership agreement will allow Nkwe to fulfil its key goal of developing its world class PGM assets, and in particular the Garatau PGM project, and become a significant producer of platinum group metals, said Nkwe Platinum‘s MD Maredi Mphahlele. As part of the key terms of the agreement, Zijin will be granted exclusive rights to participate in mining projects in respect of Nkwe‘s mining tenements, including a right of first refusal to finance project development and receive the off-take supply on the basis of financing the development of Nkwe‘s projects.
Nkwe Platinum noted that all necessary South African and Chinese regulatory consents, permits and approvals are obtained, including the approval of the South African Reserve Bank, regarding the transaction.Zijin Mining is exposed to various commodities, including gold, silver, tungsten, copper, lead, zinc, tin and iron. “Zijin are one of China’s leading major mining houses who see Nkwe‘s PGM assets as a key focus as they look at the expansion of their overseas mining operations. We are extremely excited to have a partner as significant and financially and operationally capable as Zijin working with us on the development of our world class PGM assets,” Mphahlele concluded.