South Africa-based Wesizwe Platinum has struck a deal with a Chinese consortium to develop the Frischgewaagd-Ledig project, which is expected to produce 350,000 oz of pgm per year.

The mining exploration group saw a 6.6 per cent bump in its shares following the announcement of the $877 million (£563 million) financing package, backed by China's Jinchuan Group and the China-Africa Development Fund, Reuters reports.

As part of the funding package, the consortium will secure $650 million in Wesizwe Platinum's debt and pay $200 million for a 45 per cent stake in the company, as well as providing additional funding for the project.

Meanwhile, special purpose vehicle Micawber will pay the remaining $26.6 million for a six per cent stake in Wesizwe Platinum.

The deal will serve as a boost to South Africa's pgm production, which fell slightly this year due to safety-related stoppages and strikes, a source told Reuters last month.

In August, Wesizwe Platinum announced that it had signed an interim funding facility of R91 million (£8.6 million) with the Bank of China's Johannesburg branch.

Source:

S Africa's Wesizwe finalises financing deal (17/12/10)

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