Elgin Resources and Jonpol Explorations have revealed that financing is now complete for their joint venture firm Eastern Platinum (Eastplats).

Jonpol has now completed its subscription receipt financing and as part of the companies' amalgamation the share capital of each will be put into Eastplats.

In addition, the same procedure will occur with property and assets, both becoming the property and assets of Eastplats.

Mr Ian Rozier, president of Elgin, commented: "Eastplats is committed to building a portfolio of near surface platinum rich mining projects in South Africa using Spitzkop as a foundation.

"The $34 million financing and the completion of the merger will enable the company to move ahead rapidly with its objective to become a significant participant in South Africa's pgm sector."

Subscription receipts were sold by private placement to investors in Europe, the US and Canada and the gross proceeds are being held in escrow and will be released in connection with the Eastplats acquisition and amalgamation.

Completion of the deal is subject to a number of conditions such as all necessary court and regulatory approvals and it is hoped the deal will be completed this week.