www.nkweplatinum.com
Nkwe Platinum is engaged the acquisition, exploration, and development of platinum group and associated base metal projects in the Republic of South Africa. Its projects include Garatau Project, Tubatse Project, De Wildt Project, Pilanesberg Project, Kliprivier Prospect, Ghost Mountain Prospect and Tinderbox Prospect.
Nkwe Platinum to raise $7.5m to develop Garatau/Tubatse platinum project with Xstrata
Platinum development company, Nkwe Platinum (ASX: NKP) has announced it will raise $7.5 million at 25 cents per share via a placement to sophisticated and institutional investors. A free 24 month option (35 cents) for every two shares held will be attached.
Reflecting the inceasing value inherent in the Garatau / Tubatse project, investors have driven the Nkwe share price up from 12 cents earlier this year to 28 cents. With market capitalisation now at $150 million, the market is now recognising the value in the project.
Xstrata's participation has signficantly enhanced project value and added a new dimension to Nkwe's future prospects to become an independent PGM producer and strategically utilize independent or joint ventured smelting and refining capabilities.
Funds raised will be used to expedite the Garatau / Tubatse platinum project Bankable Feasibility Study (BFS) with Xstrata. The highly prospective ground across five farms is in proximity to world class mines in South Africa. The Bushveldt region of South Africa – is one of the world’s premier platinum producing regions.
The recent acquisition by Nkwe of IGC’s 15% stake allows Nkwe to move to a 74% interest across the five farms, allowing full control of the Garatau / Tubatse project, a world class platinum project with current JORC resource of 68.9M oz 3PGM + Au. The remaining 26% interest is held by Nkwe’s controlling shareholder, South African BEE Company Genorah Resources.
Interestingly, the Garatau-Tubatse project consists of five contiguous farms with a strike length of more than 30km, stretching all the way in proximity from Implats’ Marula mine in the north, past Anglo Platinum’s Modikwa Joint venture to the border of Eastplat’s Spitzkop – Kennedy’s Vale project in the south.
Following completion of a Bankable Feability Study (BFS), Xstrata, upon electing to exercise their option to acquire 50% of the Garatau / Tubatse project, will have a 50% participation interest in the Garatau / Tubatse Project from Nkwe and Genorah through the funding of mine development through to concentrator stage.
The Feasibility Study with its joint venture partner Xstrata in the north and Tubatse Project Area in the south aims to develop two mines with a combined annual production of more than 1 million ounces platinum group metals from a targeted mineralisation base in excess of 100 million ounces PGM+Au.
