Speculation is rife that platinum junior Wesizwe is looking to acquire Eland Platinum.

Wesizwe reported it had entered negotiations with a view to making acquisitions but did not declare the identity of its target, but one analyst told Mining Weekly that Eland was the most likely target.

Although Wesizwe has remained tight-lipped about any deal, the announcement from Eland on April 12th that it had "entered negotiations" is perceived by analysts to suggest that it is the target.

Should the merger go through, it would represent the fourth major consolidation deal for the industry in recent months, following Impala Platinum's announcement that it will buy the entirety of African Platinum's shares, Eastplats decision to up its stake in Barplats to 74 per cent and the acquisition of AfriOre by Lonmin.

Earlier this week Wesizwe revealed that it is considering the construction of a R3.5 to R3.8 billion platinum mine in the Sun City Area, after a pre-feasibility study yielded encouraging results.

Sources:

Wesizwe in talks to buy, might be looking at Eland, 20/04/07

http://www.miningweekly.co.za/article.php?a_id=107657

Wesizwe spikes on takeover speculation, 19/04/7

http://www.busrep.co.za/index.php?fArticleId=3787966&fSectionId=552&fSetId=662

Ÿ Adfero Ltd