Nkwe Platinum will increase its interest in the Garatau/Tubatse platinum project by purchasing a key 15 per cent stake from International Goldfields, it emerged today (9th June).

The company, which already has a 59 per cent stake in the project - located on the Bushveld Complex in South Africa - has agreed a price of A$60 million (£29.5 million) for the deal.

Offering a current Joint Ore Reserves Committee resource of 44 million ounces 3E pgm + gold, the site is comprised of five contiguous farms with a strike length of over 30km.

Under the terms of the deal - which is subject to government regulations and approval - Nkwe will pay an initial A$20 million next month and the remaining A$40 million by the end of next February.

The news will be welcomed by the company's shareholders as it firms up its joint venture with Xstrata, which has an option to exercise a 50 per cent interest in the project.

Nkwe and Xstrata are currently conducting a feasibility study in the northern Garatau area and southern Tubatse area with the eventual intention of developing two new mines.

According to reports, these two facilities would offer a combined annual production of more than 1 million ounces pgm from the anticipated 100 million ounces pgm + gold on offer.

The remaining 26 per cent interest in the project is owned by South African black economic empowerment firm Genorah Resources, Nkwe's holding company.

Sources:

Nkwe Platinum buys key stake in Garatau / Tubatse project to move to 74% (09/06/09)

IGC sells South African platinum stake to Nkwe (09/06/09)

Ÿ Adfero Ltd