Wesizwe Platinum has secured $12.5 million (£8.01 million) in funding to help advance plans for its flagship pgm project, it was confirmed yesterday (23rd August).

The South African firm has struck an interim financing deal with the Bank of China to help develop the Frischgewaagd-Ledig site, which could offer 350,000 oz per year.

A statement from the company revealed that the facility was "agreed at very favourable terms and will be repaid once the full funding for the project has been secured".

The news comes after Wesizwe revealed in May that it had agreed to sell 51 per cent of its shares to Chinese firm Jinchuan Group and the China-Africa Development Fund for $227 million.

As part of the arrangement, the consortium will also contribute $650 million in order to help bring Frischgewaagd-Ledig to full pgm production by 2018.

However, the project is unlikely to see Wesizwe compete with Anglo Platinum and Impala Platinum, the world's two top producers of the precious metal, in terms of output.

South Africa currently supplies about three-quarters of the world's platinum.

Sources:



SAfrica's Wesizwe gets project funds, shares jump (23/08/10)



Chinese bank provides R91m interim funding for Wesizwe mine (23/08/10)

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