Lonmin and Impala Platinum have issued a joint statement saying the firms have made further progress in their bid to develop Incwala Resources.

Implats and Lonmin said that the outstanding US$30 million of funding from 'Historically Disadvantaged South Africans' (HDSA) has now been sourced.

As a result of strong financial support, Andisa Capital, Dema Group and Vantage Capital will increase their respective interests in Incwala Resources by an equal amount.

Lonmin said it would guarantee US$5 million of the additional funds to be obtained by each of Andisa, Dema and Vantage, in order to help develop the role of Lonplats employees.

A Lonplats Employee Trust (LET) will be established which will hold a 25 per cent equity interest in each of the Andisa, Dema and Vantage consortia that will invest in Incwala Resources.

Masakhane Provident Fund will be the sole beneficiary of the funds, with Lonplats employees the ultimate beneficiaries.

The result of these developments is that the Andisa, Dema and Vantage consortia will increase their interest in Incwala Resources to some 16 per cent each, with the LET holding a 25 per cent interest.

Incwala Resources will thus boast a broad base of shareholders and remain over 52 per cent HDSA controlled from the outset.