Zijin Mining Group and NKWE Platinum have formed a strategic partnership to further the development of the flagship Garatau mining project.Zijin, through its wholly-owned subsidiary Jin Jiang Mining, will invest AUD$20 million in Nkwe by a placement of 3 year convertible bonds. Shareholder approval for the transaction was recently obtained by Nkwe. The parties have agreed that completion will occur in two tranches, the first of AUD$7m and the second of AUD$13m convertible bonds. To complete funding under the final tranche, Zijin and Nkwe are working together to complete additional security arrangements.
Approximately AUD$5m of the funds received under the first tranche will be used to refinance the current security package relating to the Genorah loan. The remaining AUD$2m of the funds will be used for Nkwe’s working capital requirements.The completion of the first tranche is a significant milestone for Nkwe as it moves to commence development of the Garatau project with Zijin.