Nkwe Platinum has agreed a A$60 million (£33.7 million) deal to buy International Goldfields' (IGC) stake in the Tubatse project, it was confirmed yesterday (7th October).

The two companies agreed a deal in principle for the 15 per cent holding in June and have now signed a formal asset agreement that takes Nkwe's interest in the site to 74 per cent.

Under the terms of the arrangement, Nkwe will make an initial A$9 million payment, while laying down a further A$1 million deposit if it receives approval from IGC shareholders.

The move comes after the two companies forged an exclusive option agreement late last year relating to IGC's stake in the three farms that comprise the South African project.

However, Tubatse is yet to acquire a mining licence and the remaining A$50 million will only be paid if this situation is resolved, or if Xstrata becomes involved in the transaction.

The diversified Swiss miner could exercise the right to a 50 per cent stake in the project, while also holding a joint-venture partnership with Nkwe for the Tubatse-Garatau area.

Tubatse alone is currently believed to offer a joint ore reserve committee complaint resource of approximately 45 million ounces pgm 3E (platinum, palladium and rhodium) plus gold.

Meanwhile, Xstrata could also choose to bankroll the development of two mines and a concentrator for Tubatse-Garatau, which could yield one million ounces pgm per year.

Source:

IGC, Nkwe sign formal agreement for A$60m Tubatse deal (07/10/09)

© Adfero Ltd