NKWE Platinum completes A$90m placement: to list on Hong Kong market

NKWE Platinum (ASX: NKP) has completed a successful placement with select institutional investors targeted for its proposed Hong Kong listing and is now finalising the Bankable Feasability Study (BFS) on its Garatau Project in South Africa.

The placement of securities from the company was completed to raise A$10m at an issue price of A$0.50 per share with a attaching unlisted option ($0.50, 30 June 2012) for every 2 ordinary fully paid shares subscribed for.

NKWE Platinum said the funds raised will be used to fast track drilling program and BFS on the Tubtase Project, and for the current working capital of the company. Max Capital Pty Limited and Helmsec Global Capital Limited acted as joint lead managers to the issue.

Proposed Listing on the Hong Kong Stock Exchange

Nkwe has appointed Helmsec to assist with a dual listing of the company on the Hong Kong Stock Exchange (HKEx) during Q42010 in conjunction with the company’s planned listing on the Johannesburg Stock Exchange.

This has been done "in order to enhance equity capital market support from Asian economies, Asia being one of the world’s fastest-growing regions for PGM demand."

The HKEx is the second-largest stock exchange in Asia, by market capitalisation (ranking behind the Tokyo Stock Exchange). The HKEx is regarded as one of the most diversified institutional and retail trading markets in the world, with 42% of trading being conducted by investors domiciled outside China and Hong Kong.

HKEx recently announced significant initiatives to attract new HKEx listings by foreign companies. Total market capitalisation of natural resources companies on the HKEx has grown more than 30 times over the past decade to approximately $341 billion.

Nkwe said it believes that a dual listing on the HKEx will provide Nkwe with higher levels of shareholder liquidity and increased exposure to Asian capital markets and strategic partners looking to access physical PGM metals.

Bankable Feasibility Study

Following the successful draft Bankable Feasability Study (BFS) process, Nkwe is now finalising the BFS over the coming weeks with optimisation of major capital cost items and mine scheduling.

Peter Landau , executive director, said the company anticipates that the optimisation process will result in a meaningful reduction of proposed capital costs of the project and an improved timeline to start of production.

In conjunction with this process, Nkwe is moving to complete the formal exercise of the development option by Xstrata over the Garatau and Tubatse projects.