| Thu 3 Feb 2011, 16:19 | | WEZ - Wesizwe Platinum Limited - Platinum Group Metals exercises option to |
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WEZ
WEZ
WEZ - Wesizwe Platinum Limited - Platinum Group Metals exercises option to
secure an additional 19.25% in Project 1 from Wesizwe for R408million
Wesizwe Platinum Limited
(Incorporated in the Republic of South Africa)
Registration number 2003/020161/06
JSE code: WEZ
ISIN: ZAE000075859
("Wesizwe" or "the Company")
Platinum Group Metals exercises option to secure an additional 19.25% in Project
1 from Wesizwe for R408million
Wesizwe Platinum is pleased to announce that following the exercising of an
option by Platinum Group Metals (RSA) (Pty) Ltd ("PTM"), a deposit of
approximately R408 million has been made into an escrow account on behalf of the
Company.
In April 2010 Wesizwe received the necessary regulatory approvals required under
Project Delta to assume 100% ownership of its core Frischgewaagd-Ledig Project
while retaining a 45.25% interest in neighbouring Projects 1 and 3 of Maseve
Investments 11 (Pty) Ltd. ("Maseve").
The terms of this transaction granted PTM the option, within a stipulated time
period, to enhance its stake to 74% through an injection of capital into Maseve
on behalf of Wesizwe, whose interest would thus be diluted to 26%. The escrow
account is held by Maseve but will be used solely for funding Wesizwe`s 26%
contribution to project development, making the Company`s participation fully
funded.
Wesizwe CEO, Arthur Mashiatshidi, commented: "This was the final step in
concluding Project Delta and we are hopeful that the clarified ownership
structure will ensure that the market attributes the appropriate value from this
project to the Company."
The Maseve projects are located near Rustenburg in the North West province of
South Africa. Project 1 adjoins Wesizwe`s Frischgewaagd-Ledig Project; it also
shares a boundary with the Styldrift mine which is under construction as well as
the producing Bafokeng Rasimone Platinum Mine, both of which are owned by Royal
Bafokeng Platinum Limited ("RBP").
PTM is the manager and operator of the Maseve Projects 1 and 3 and announced an
initial construction budget of US$100 million for the Project 1 Platinum Mine in
December 2010. The budget was unanimously approved by the Maseve Board, on which
Wesizwe currently holds four seats.
The Project 1 Platinum Mine plan calls for a production rate of 275,000 ounces
4E (platinum, palladium, rhodium and gold). The engineering, procurement and
construction management, ("EPCM") contractor has been appointed and work has
begun on the planning of the surface infrastructure and underground mine
development. The contractor will work closely with the company`s Project Manager
and Owner`s Representative.
3 February 2011
Sponsor: Investec Bank Limited
Date: 03/02/2011 16:19:01 Produced by the JSE SENS Department.
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