10/02/2009 - 09:47

Nkwe Platinum, IGC merger a step closer

10/02/2009 - 09:47

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Nkwe Platinum has today confirmed it accepts International Goldfields' $60 million valuation for a South African project as part of a merger deal.

Nkwe Platinum has today confirmed it accepts International Goldfields' $60 million valuation for a South African project as part of a merger deal.

Last month, International Goldfields (IGC) finalised its terms of a proposed merger with Nkwe in a move that will consolidate both stocks' platinum interests in South Africa.

Both companies have been in merger talks since August last year following a deal that allowed Nkwe to acquire IGC's 15 per cent interest in the Tubatse platinum project.

Under IGC's proposal, Nkwe will buy all the shares in IGC based on the latter's cash in the bank and the $60 million project valuation.

The final offer price has yet to be determined, however IGC said the return to shareholders will be around 49.9 cents.

Nkwe has yet to approve the deal, however today said it agreed with IGC's valuation and "looks forward to completing the exercise and acquisition over the coming months".

Additionally, Nkwe said today that it has extended the option agreement with IGC relating to the 15 per cent interest in Tubatse for a further six months.

Under the extension arrangement, Nkwe will issue 2.5 million of its shares to IGC.

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