| Tue 7 Jun 2011, 12:33 | | WEZ - Wesizwe Platinum Limited - Wesizwe announces date for offical project |
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WEZ
WEZ
WEZ - Wesizwe Platinum Limited - Wesizwe announces date for offical project
launch
WESIZWE PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2003/020161/06)
JSE code: WEZ ISIN: ZAE000075859
(the "Company" or "Wesizwe")
WESIZWE ANNOUNCES DATE FOR OFFICAL PROJECT LAUNCH
Wesizwe Platinum has announced that the official launch date for its
Frischgewaagd-Ledig mine development project has been agreed as 4 July 2011.
"The date that has been set provides the benchmark against which future
project delivery milestones will be measured. With the financial resources
from the capitalisation programme now available, Wesizwe can start in
earnest with mine development," said Acting Joint CEO, Arthur Mashiatshidi.
The equity portion (US$227 million) of the funding transaction concluded in
May 2011 with Jinchuan and CADFund (the Chinese consortium) as well as
Micawber (a special purpose empowerment vehicle) was recently converted to
local currency at favourable exchange rates and is now in Wesizwe Platinum
banking accounts.
Mashiatshidi added: "The launch date is a critical milestone in the life of
the project and will capitalise on the early works programme executed before
the official launch date. Resourcing of both the Wesizwe Platinum Owner`s
Team and that of the EPCM contractor is an important part of this
preparation, as is the establishment of project systems for procurement,
financial management and quality assurance, amongst others."
TWP have been appointed EPCM contractor for the first 12 months of mine
development - from July 2011 to June 2012 - with the option of renewing this
over the entire life of project execution. The scope of this work will
include all project critical activities that will enable the project to
start pre-sink preparation on the main and ventilation shafts in the first
half of 2012.
Some of the key contracts to be awarded in the short term are the civils
contract, which will be appointed within four months to do the collaring on
the main and ventilation shafts following the box cut excavations; while the
shaft sinking contractor is expected to be appointed within six months from
the start date.
Other activities on the critical path include a complete refurbishment of
all the winders which have been purchased and are currently being stored at
the Wesizwe Platinum site, and securing final approval for bulk services,
being water and electricity.
Wesizwe has paid the national energy supplier, Eskom, the requisite deposit
of approximately R58 million and has provided the required performance
guarantees of around R31 million which will enable Eskom to commit to
provide permanent power supply to the mine in line with the requirements of
the project.
Furthermore, Wesizwe Platinum and its 26%-owned associate company, Maseve
(in partnership with Platinum Group Metals - PTM), are collaborating in the
processes of securing bulk water supply to the two mines. The companies are
continuing their discussions with the Magalies Water Authority and other
stakeholders in order to derive maximum advantages from a synergistic
approach to the infrastructure needs of both parties.
"Internally, we are finalising our structure with a view to bringing in
specialist skills as required over the next 12 to 18 months," said Mr Jianke
Gao, the CEO designate of Wesizwe who will take over in the position once he
has secured an appropriate work permit.
A number of board and management changes were announced in May 2011following
the conclusion of the transaction which resulted in the Chinese consortium
becoming 45% shareholders in the Company. These changes saw both Arthur
Mashiatshidi and Jacques De Wet stepping down from their former positions
but both remain with the company in advisory roles on financial, management,
regulatory and corporate governance issues.
"The Board and management team are committed to ensuring that shareholders
realise full value from one of the best undeveloped PGM assets in the
country through the responsible and professional development of a world-
class mining operation," said Dawn Mokhobo, Chairman of Wesizwe.
Johannesburg
7 June 2011
Sponsor:
Investec Bank Limited
Date: 07/06/2011 12:33:01 Produced by the JSE SENS Department.
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