The proposed merger between Nkwe Platinum and International Goldfields (IGC) looks increasingly likely after Nkwe confirmed today (10th February) that it is in agreement with IGC over its valuation of a South African project.

While the merger has not yet been fully approved by Nkwe, it has nevertheless accepted the AU$60 million estimation put forward by IGC and "looks forward to completing the exercise and acquisition over the coming months".

Merger talks have been held since August 2008 and came on the back of Nkwe's interest in IGC's 15 per cent stake in the Tubatse platinum project, wabusinessnews.com reports.

Plans were finalised last month, although the conclusive offer price is not yet set in stone.

Meanwhile, Nkwe has extended the Option Agreement that exists between the two firms for an additional six months.

The agreement relates to the acquisition of the 15 per cent stake in the Tubatse Project in South Africa's Bushveld Platinum region, Proactive Investors Australia reports.

Nkwe has chosen to lengthen the period for negotiation by six months in return for issuing 2.5 million ordinary shares to IGC.



Sources:

Nkwe Platinum, IGC merger a step closer (10/02/09)
http://www.wabusinessnews.com.au/en-story/1/70304/Nkwe-Platinum-IGC-merger-a-step-closer-

Nkwe Platinum extends option over IGC stake (10/02/09)
http://www.proactiveinvestors.com.au/companies/news/834/nkwe-platinum-extends-option-over-igc-stake-0834.html