The Sydney Morning Herald revealed on 2nd January that South African miner Nkwe Platinum was on the verge of launching a takeover bid for International Goldfields.

The friendly, all-cash deal for the rival platinum explorer will be worth between $37.3 million and $45.6 million, following an independent valuation recently by BDO Kendalls.

Nkwe has been discussing a potential offer for months against the backdrop of the falling platinum price but speculation suggested it was about to make a bid of 50c per share.

The reports pushed International Goldfields' share price up by 2.5 per cent to 33c on high volume, prompting Executive Chairman Tony Sage to put an end to trading.

He told the newspaper: "We thought it would be prudent [to halt trading] given it is very close to finalising a transaction."

Under the terms of the deal, International Goldfields would gain a 15 per cent stake in three separate exploration projects on South Africa's Bushveld Complex, which is rich in platinum.

Mr Sage expressed his belief that Nkwe would fund the deal by selling a royalty stream, rather than taking out more debt or freeing up equity from elsewhere.

He told the newspaper: "Given the level of negotiation that has gone on in the last three or four months, they don't want to lose the opportunity.

"They are very keen to do a deal quickly. We think we can finalise the deal in the next two or three days."

Nkwe has secured an option agreement with International Goldfields, whereby it possesses exclusive negotiating rights until 7th February.

However, Mr Sage noted that if a concrete offer is not forthcoming, several parties - including Xstrata, Anglo American and Pallinghurst Resources - would be interested in making a bid for such sought-after locations.

"Everyone knows this is the last area where there is a massive amount of platinum," he added to the newspaper.

"We are sitting on a very strategic stake."

The announcement comes after Nkwe and Genorah, its black economic empowerment partner, sold Xstrata an option on a 50 per cent stake in their possession of five properties on the complex's Eastern Limb for $10 million.

If Xstrata decides to take up the option at the end of the year, it will become fully responsible for funding the $1 billion project, which contains around 100 million PGM ounces.

http://business.smh.com.au/business/nkwe-platinum-lines-up-cash-bid-for-international-goldfields-20090102-7945.html

Meanwhile, Canadian and South African miner Platinum Group Metals has issued its financial results for the period ending 30th November 2008.

The company revealed that around half of its accounts payable total of CA$2,561,754 ($2.05 million) was comprised of surface rights acquisitions in South Africa.

Furthermore, the majority of its balance was derived from drilling, sampling, geophysical and engineering work on the Western Bushveld Joint Venture (WBJV).

The total global exploration and engineering expenditures incurred by the miner over the course of the quarter were $517,337, with $439,572 for the WBJV - in comparison to figures of $3,067,788 and $2,890,027 for the equivalent period in 2007.

The company's main focus is on the WBJV - a platinum exploration and development site which covers 72km - and it controls 74 per cent of Projects 1 and 3, while Wesizwe controls the remaining 26 per cent plus 100 per cent of Project 2.

Having released the results in a statement, Platinum Group Metals also revealed that it is exploring a number of possibilities for 2009 in relation to its projects in South Africa.

"The company continues to discuss financing possibilities with several large banks who have expressed interest to be involved in the financing of Project 1," it said.

"A second option would be to consider a strategic partner who has the financial ability to finance Project 1 construction costs, possibly with a metal price instrument or hedge.

"A third option would be to sell some or all of the South African projects at the most favourable price for shareholders."

http://www.marketwire.com/press-release/Platinum-Group-Metals-Ltd-TSX-PTM-938017.html