IGC, Nkwe Platinum call off merger

The Tony Sage-chaired International Goldfields (IGC) and Nkwe Platinum have decided not to merge, preferring instead to settle a $60 million project stake acquisition.

IGC has agreed to sell its 15 per cent interest in the Tubatse platinum project in South Africa for $60 million, with the first $20 million tranche due on or before July 15.

The balance is scheduled to be paid on ore before February 28 next year.

Both companies had an option agreement in place since late last year that enabled Nkwe to negotiate on an exclusive basis to acquire the IGC stake.

The two parties were also in talks to merge through an all-scrip transaction however, Mr Sage today said he believes at this time an asset sale was in the best interest of the shareholders.

"We strongly believe that to have significant funds at a time when there are a number of exciting projects on the market at fair prices represents the best opportunity for IGC to deliver sustained value to its shareholders", he said.

IGC is currently reviewing a number of acquisitions.