| Tue 31 Dec 2013, 8:10 | | WESIZWE PLATINUM LIMITED - Voluntary announcment : Conclusion of definitive funding agreement for the development of The Bakubung Platinum mine |
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WEZ 201312310004A
Voluntary announcment : Conclusion of definitive funding agreement for the development of The Bakubung Platinum mine
WESIZWE PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2003/020161/06)
JSE code: WEZ ISIN: ZAE000075859
("Company" or "Wesizwe")
VOLUNTARY ANNOUNCEMENT: CONCLUSION OF DEFINITIVE FUNDING
AGREEMENTS FOR THE DEVELOPMENT OF THE BAKUBUNG PLATINUM MINE
PROJECT
Shareholders are referred to Wesizwe’s SENS announcement, dated 21
January 2013 in terms of which it was inter alia announced that:
- the China Development Bank (“CDB”) confirmed its US$650
million loan funding for the Bakubung Platinum Mine project
(“the Project Loan”), subject to the finalisation of
outstanding conditions precedent (“Funding Conditions”) and
conclusion of definitive loan agreements (“the Funding
Agreements”); and
- in anticipation of the Project Loan, two separate US$100m
short-term loan contracts were concluded in December 2012 and
which will be refunded in part by the Project Loan.
The above funding arrangements are pursuant to the terms and
conditions of investment entered into between Wesizwe and China-
Africa Jinchuan Investments (Pty) Limited (“Jinchuan”) and in
accordance to the subscription agreement signed between the
Jinchuan and the Company in May 2011 (“the Subscription
Agreements”). A specific provision of the Subscription Agreements
required that Jinchuan will secure the provision of an US$650
million debt facility to the Company.
Further to the above, the board of directors are pleased to
announce that the Funding Conditions have been finalised and
definitive Funding Agreements were duly concluded on 31 December
2013. In terms of the Funding Agreements, the CDB have made
available to Wesizwe a loan facility the basic terms of which are:
- a 15 year facility with a total capital commitment of US$650
million;
- the capital portion repayment only to commence after 6 years
(i.e. a repayment holiday of 6 years) from first drawdown;
and
- interest payable will be 6 month LIBOR plus 3.5%.
Following the conclusion of the Funding Agreements, Mr Jianke Gao,
Chief Executive Officer of Wesizwe, said:
“We are very pleased to announce the conclusion of the funding
agreements, on what we believe to be very favourable terms. This
is a special day for Wesizwe. The funding facility, together with
the fact that we have made tremendous progress on the project to
date, effectively de-risks the project significantly. Going
forward, the project is now entering a very productive period in
its life and we anticipate that further value will be unlocked for
Wesizwe shareholders during this exciting time.“
For more information contact:
Paul Smith Mr Hamlet Morule
Chief Operating Officer Executive: Corporate Affairs and
Wesizwe Platinum Limited Investor Relations
Tel: 011 994 4600
Wesizwe Platinum Limited
Email: paul.smith@wesizwe.com
Telephone: 011 994 4600
www.wesizwe.com
Email: Hamlet@wesizwe.com
www.wesizwe.com
Johannesburg
31 December 2013
Sponsor:
PSG Capital Proprietary Limited
Date: 31/12/2013 08:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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