China’s second largest gold producer will invest $20 million in Perth-based explorer NKWE Platinum under a strategic partnership agreement announced today.
NKWE said its partnership with Zijin Mining Group would see the funds invested by way of three-year convertible bonds, with an interest rate of 10 per cent and convertible into ordinary shares at a price of 10 cents after 12 months.
In return, Zijin will receive exclusive rights to participate in mining projects across NKWE’s tenements, including the right of first refusal to fund project development and to receive offtake supply on a financier basis.
Zijin’s Jin Jiang will be appointed as a director of NKWE.
NKWE managing director Maredi Mphahlele said the partnership would allow the company to fulfil its goal of developing its projects, particularly its flagship Garatau platinum mine in South Africa.
“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,” Mr Mphahlele said in a statement.
“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.”
At 10:00AM, WST, NKWE Platinum shares were up 21.8 per cent, trading at 9.5 cents.
