HomeNewsWesizwe seeks Chinese funding

Wesizwe seeks Chinese funding

The core yard where
drill core for the
project is stored
Johannesburg, South Africa — MININGREVIEW.COM — 29 September 2010 – Platinum exploration and development company Wesizwe Platinum Limited is in advanced talks with a Chinese consortium for an US$877 million (R6.4 billion) financing package, after posting a loss for the first half of 2010.

The company confirmed in a statement here that the talks with China’s Jinchuan Group Limited and the China-Africa Development Fund were aimed at securing the funds in the form of debt and equity for its key Frischgewaagd-Ledig project.

“Wesizwe is in advanced discussions relating to the conclusion of this transaction, and it is anticipated that legal agreements will be finalised over the coming months,” newly appointed CEO Arthur Mashiatshidi said in the statement.

The company “’ which became the sole owner of the Frischgewaagd-Ledig project after getting approval from the Department of Mineral Resources in April “’ said that early preparatory works for the project had started.

Wesizwe previously said it had agreed a R91 million interim financing deal with the Chinese for the Frischgewaagd-Ledig project.

The Chinese group is also expected to spend US$650 million (R4.7 billion) to get the platinum project to full production by 2018 and pave the way for China’s direct stake in the platinum sector in South Africa “’ the world’s largest producer of the metal.